Dairy Product Price Support Program

USDA Announces Clarification on DPPSP - August 10, 2009

USDA announced in an informational bulletin that the increased support prices initiated July 31, 2009 will be offered on products produced in August through October, rather than offered in August through October. This had the effect of extending the increased support price by as much as two months, to the end of 2009. It also reduced the disruption of a sudden rush to sell on October 31, possibly minimizing disruption to the spot market. If you have any questions about this announcement, please contact NMPF staff members Roger Cryan or Peter Vitaliano.

 

NMPF Applauds Expansion of Dairy Price Support Program to Help Farmers - July 31, 2009

Five weeks after NMPF asked for additional economic assistance for struggling dairy farmers, the U.S. Department of Agriculture agreed to expand the Dairy Product Price Support Program in a way that should boost farm-level income.

In a decision announced July 31, 2009 by Agriculture Secretary Tom Vilsack, the USDA said it will temporarily increase purchase prices for cheese and nonfat dry milk. The prices will rise from $1.13 per pound for block cheese to $1.31; barrel cheese, from $1.10/lb. to $1.28; nonfat dry milk powder, from $0.80/lb. to $0.92.

The full press release is available here.

 

NMPF Calls for Temporary Expansion of Dairy Price Support Program to Help Farmers - June 26, 2009

NMPF asked the U.S. Department of Agriculture to boost its purchase prices for cheese and milk powder in order to bolster the current rock-bottom milk prices that are threatening the livelihoods of thousands of dairy farmers.

In a letter sent to Agriculture Secretary Tom Vilsack, NMPF requested that the USDA raise the purchase price for cheese blocks from $1.13/lb. to $1.19; raise the purchase price for barrel cheese from $1.10 to $1.16/lb.; and raise the purchase price for nonfat dry milk powder from $0.80/lb. to $0.84. These price levels are identical to those suggested by NMPF to Congress as it wrote the farm bill in 2007 and 2008. Higher product prices will translate into higher farm-level prices, according to NMPF.

NMPF's full press release is available here.

 

NMPF Urges USDA to Address Weakening Dairy Prices - January 8, 2009

NMPF sent a letter to the USDA urging immediate action to help address the collapse of dairy prices. NMPF believed that Secretary Schafer had several policy tools at his disposal to bolster the safety net effect of the price support program, while also utilizing other programs that can help with farm-level prices, such as DEIP.

The full letter is available here.

 

Dairy Product Price Support Program

Since 1949, the Dairy Product Price Support Program (DPPSP) has supported dairy prices through a standing offer to purchase dairy products. USDA’s Commodity Credit Corporation (CCC) currently has a standing offer to buy butter, cheddar cheese, and nonfat dry milk, (per USDA’s specifications) at the minimum product prices set by law.

As of January 5, 2009, the support prices for dairy products were as follows:

Product Price/lb.
Butter $1.0500
Nonfat dry milk $0.8000
40-lb block cheddar cheese $1.1300
500-lb barrel cheddar cheese $1.1000


 

 

 

 

 

 

 

*Based on changes in the 2008 Farm Bill and the 1/5/09 announcement of revised prices and cancelled offers for value-added products.