NMPF Thanks Congress for Dairy Provisions in COVID Assistance Package

The National Milk Producers Federation (NMPF) thanked Congress today for the positive steps it is taking through COVID relief legislation to assist dairy farmers who have faced unprecedented market volatility while working every day to nourish struggling families.

“With difficult months of the pandemic still ahead, it was crucial for lawmakers to come to a bipartisan agreement that helps farmers do what they do best: feed families. To do this, they need financial stability and ways to connect to families in need. We thank Congress for its leadership, and we look forward to working with USDA in implementing this legislation. Importantly, this package includes nearly $1 billion in targeted support to help dairy producers continue to feed families throughout these difficult times,” said Jim Mulhern, NMPF president and CEO.

Highlights of the pandemic legislative package for dairy producers include:

  • Dairy Donation Program – the measure provides $400 million for a new NMPF-backed Dairy Donation Program to help dairy stakeholders and non-profits work together to provide dairy products to food-insecure households and minimize food waste. This program is carefully balanced and is open to all dairy products. NMPF is grateful to Senator Debbie Stabenow (D-MI) and Rep. Collin Peterson (D-MN) for their leadership in securing this and other dairy provisions in the package.
  • Payment Limits Flexibility – the bill includes dedicated funding to allow USDA to provide additional compensation to producers who were unable to receive the full support they needed under the Coronavirus Food Assistance Program on account of payment limitations. NMPF thanks Rep. Mike Conaway (R-TX) for advocating for this provision, as well as the many members who have sought flexibility on this front all year long including Sens. Jerry Moran (R-KS) and Dianne Feinstein (D-CA) and Rep. Jim Costa (D-CA).
  • Supplemental DMC Payments – the measure establishes Supplemental Dairy Margin Coverage payments for farms that have increased their DMC production history since 2014. These payments will be based on the difference between the farm’s 2019 actual production and its DMC production history. While the provision is targeted to smaller operations, it will enhance the farm bill baseline for all dairy farmers as it runs concurrently with DMC up to 2023.
  • Paycheck Protection Improvements – the bill includes the bipartisan NMPF-backed Paycheck Protection for Producers Act which would make the Paycheck Protection Program work better for sole proprietor, independent contractor, and self-employed dairy farmers by allowing them to use their 2019 gross farm income to determine their PPP loan amounts. NMPF commends Sens. John Thune (R-SD) and Tammy Baldwin (D-WI) and Reps. Ron Kind (D-WI), Glenn ‘GT’ Thompson (R-PA), Anthony Brindisi (D-NY), and John Joyce (R-PA) for their work on this measure.

Dairy producers will also be eligible for support in the $11 billion agricultural disaster assistance package Congress has included in the legislation, with additional details expected in coming days. Of note, at least $1.5 billion of this package is dedicated to additional product purchases.

NMPF has served its members as the leading advocate for U.S. dairy farmers throughout the coronavirus pandemic. It has also been an industry leader in providing useful informational resources for the dairy sector.

NMPF Hails Funding Plan, Calls for Further COVID Relief

The National Milk Producers Federation today thanked Congress for sending bipartisan legislation to President Trump that extends government funding until Dec. 11 and urged Congress and the White House to reach agreement on another coronavirus relief package.

“We are glad Congress reached a government funding deal that provides important support to farmers and families who have weathered incredibly difficult challenges all year long,” said NMPF president and CEO Jim Mulhern. “This measure not only avoids a government shutdown; it also ensures that additional COVID-19 assistance can be provided as further needs arise and provides important nutrition assistance to families in need.”

The legislation passed by the House and Senate immediately replenishes the borrowing authority for USDA’s Commodity Credit Corporation. The CCC funds farm bill initiatives, including the Dairy Margin Coverage Program, as well as the Coronavirus Food Assistance Program, the second installment of which Agriculture Secretary Sonny Perdue announced earlier this month. Notably, it includes $8 billion in nutrition assistance and extends flexibility for school districts to make meals more affordable and accessible for students during the unprecedented COVID-19 pandemic.

NMPF hopes that, with the government funding debate resolved, Congress and the administration will now agree on another coronavirus relief bill. The House earlier this week released a revised version of its Heroes Act, which again includes important provisions such as a dairy product donation program that would help farmers and consumers. NMPF is continuing its push for additional, equitable support to all producers that reflects the losses they have suffered, no matter the size of the operation.

“The House and Senate both provide support for agriculture in their coronavirus relief proposals, and the House is reaffirming that support,” Mulhern said. “Congress and the administration need to bridge their differences and finalize a bipartisan plan that continues to provide needed disaster assistance to all dairy producers. The issues are challenging, but we believe policymakers are up to the task.”