October 27, 2010

USDA offers financial aid to dairy producers

The USDA started issuing final payments from the week of October 12 to provide financial relief to eligible dairy producers, under the Dairy Economic Loss Assistance Payment (DELAP) programme.

"We know that dairy producers have been experiencing difficult economic circumstances, but with this assistance, producers have been able to offset a portion of their financial losses," said Agriculture Secretary Tom Vilsack.

Payments to eligible producers were issued in three payment phases. Phase I payments were issued in mid-December 2009 to eligible dairy producers with production records from previous participation in dairy programmes administered by the Farm Service Agency (FSA).

Dairy producers who did not have production records at the FSA county office but submitted a request for DELAP benefits before the application deadline of January 19, 2010, were issued payments in Phase II beginning June 18, 2010.

DELAP Phase III will be disbursed to eligible dairy producers that received DELAP benefits under Phase I or Phase II. Of the $290 million budgeted for DELAP, a total of $273 million was dispersed to eligible dairy producers under DELAP Phase I and Phase II. The remaining $17 million minus a reserve established by FSA will be dispersed during Phase III.