USDA announces additional assistance for dairy producers

In another effort to help struggling dairy producers, the U.S. Department of Agriculture (USDA) recently announced the implementation of the Dairy Economic Loss Assistance Payment program.

Authorized by the 2010 Agricultural Appropriations Bill, US$ 290 million will be paid out to eligible producers across the country to help stabilize their operations that have taken substantial financial hits over the past year as milk prices have continued to decline.

In fourth quarter 2008, the national price for milk was averaging US$16.80 per hundredweight, but by the end of first quarter 2009 the price had dropped to US$12.23 cwt a decline of 27 percent. On average, the price received for milk marketed in the summer of 2009 was about half of what is costs U.S. dairy producers to produce, according to figures released by the USDA.

Also, as part of the 2010 Agricultural Appropriations Bill, the USDA announced Monday its intent to purchase approximately $60 million in cheese and cheese products for use in domestic feeding programs through the agency's Food and Nutrition Services. This aid comes at a time when the nation's food banks are experiencing all-time high demand.