It sound like this Dairy is now constrained by it's own security net. The big dairy processors were limited from being truly competetive in order to save the lesser farms. Now one of those farms wants to compete against the big boys and is hitting the same regulations that restricted the big processors. While Smith Brothers Dairy says that they were exempt from the earlier regulations, it does not say that they did not benefit from them.
Here is the problem, this dairy has its own cows. They control the milk from teat to doorstep, therefor they have cut out any middlemen. Dairy farmers who only have cows feel they are not getting their market share since the dairy can process their own milk without buying it from other farmers but this dairy has been around for70 something years and now the gubmint want them to cut back on milk production from the cows and buy the milk from farmers who only have cow and that would increase their production price and that would increase the price to the consumer.
Let me argue it this way. I have a farm that raises beef cattle, I also have my own packing plant and I also have restaurant and grocery stores where I sell my products exclusively. I also grow my own grain and hay to feed these animals. Needless to say I can produce this user end product much cheaper than the farmer that only raises beef, we both recieve the same subsidies but I make more money because we take the product from cradle to the end user and the small farmer says his product won't bring as much because of the monopoly I made with my company.You see I do not have to buy the small farmers goods and because I distribute my end product goods lessens the demand for the small guy and he in return receives less money for his product. I am all in favor of the small farmer to receive subsidies but when big coops monopolize an economy like I mentioned before I do not think subsidies should be allowed. Did I make any sense at all?