NMPF Calls on USDA to Bolster Price Support Program
July 8, 2009
The National Milk Producers Federation last month 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 June 25th 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.
The current price levels were written into the 2008 Farm Bill, passed by Congress a year ago, but the USDA has the authority to increase those prices, according to NMPF. The letter to Vilsack asks the USDA to temporarily boost those purchase prices for a three-month period of July through September.
