Dairy farmers in New York are urging federal program reforms as part of the 2023 Farm Bill to counteract the increasing expenses associated with milk production. The industry seeks to renew and potentially expand the Dairy Margin Coverage (DMC) program, which currently compensates for the disparity between milk and feed prices. The expiration of the five-year bill on September 30 necessitates congressional renewal.
The DMC program, established under the 2018 Farm Bill, safeguards dairy farmers by providing support when the difference between milk prices and average feed prices falls below a specified threshold, as outlined by the USDA. The farming community emphasizes the importance of retaining this tool during volatile periods in the dairy industry to ensure farmers' viability.
The U.S. government should increase the maximum payment to dairy farmers and reform the current price structure, which relies on production history from 2011-2013. The industry advocates for an updated and relevant pricing system that reflects the exponential growth in production per cow and per farm. This will help ensure program continuity and reduce costs.
Acknowledging the potential consequences for consumers, Senator Chuck Schumer visited Cayuga Milk Ingredients in Auburn and emphasized that the prices of dairy products would rise significantly if the DMC program is not renewed. The program's continuation helps maintain lower prices for milk and other dairy products, benefiting consumers.
Moreover, the absence of these payments would hinder dairy farmers' ability to invest in local suppliers, impacting the regional economy. The interdependence between farmers and over 50 local suppliers underscores the ripple effect of any disruption to the industry.
Schumer, referencing a press release, stated that without the DMC program, the government would be obligated to purchase milk at a price that is more than double the current rate. With bipartisan support garnered during the passing of the 2018 Farm Bill (86-11 in the Senate), Schumer stressed the importance of a united effort among farm bureaus nationwide, particularly in dairy states, to ensure the successful negotiation and passage of the 2023 bill.
As Congress negotiates the 2023 Farm Bill, farmers anticipate favorable revisions and enhancements to the DMC program, enabling them to overcome financial challenges and sustain their contributions to the local economy.
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Categories: New York, Government & Policy, Livestock, Dairy Cattle