Missouri House members have approved of tax breaks to help the state's dairy cattle industry.

The bill would allow each dairy producer to claim up to US$25,000 of annual tax credit, depending on production and milk prices. Missouri's dairy sector has weakened in recent years due to declining milk prices and rising fuel, feed and utility costs.

The tax incentive would not be able to save Missouri's dairy industry, but it could help producers to hang on long enough to identify longer-term ways to help the industry, according to supporters of the legislation.

Dairy producers would be eligible for the tax credit starting in the current tax year.

The bill requires another House vote to move to the Senate.