March 14, 2018


US senator calls for "price floor" to support New York's dairy farms


To aid dairy farmers in New York State, US, who are facing falling milk prices, New York Senator Kirsten Gillibrand is proposing a "price floor" for milk.

Called the Dairy Farm Sustainability Act, the proposal - which was announced in March - will establish a price floor for milk at US$23.34 per hundredweight, 12 News WBNG reported.

Based on the plan, dairy farms would be remunerated when milk prices fall below the price floor. Eligible farmers are to be paid "45% of the difference between US$23.34 per hundredweight and the current All Milk price" during periods of "very low milk prices", should the act comes into effect.

According to Gillibrand's office, such payments would help to stabilise farm operations.

The legislation would also bolster the current safety net for dairy farms , the office said in its press release, pointing to the "devastating" impact of low milk prices, which New York's dairy farms had suffered in the past. 

In addition, the legislation is expected to function alongside the Margin Protection Program (MPP) as well as bringing back provisions of earlier dairy programmes.

"The current MPP program would continue to operate for dairy farmers' milk prices when they are above the 'price floor'," the office stated.

Under the Dairy Farm Sustainability Act, farms that are part of the MPP could receive remunerations of up to the first five million pounds of production.

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