FarmFirst Dairy Cooperative approves of the $19 billion-dollar agriculture disaster assistance package released today, providing much needed financial support to U.S. dairy farmers.
“Every day, dairy farmers have continued to get up and do their job to their best ability, day in and day out, producing a wholesome, nutritious product for consumers across the world,” says John Rettler, dairy farmer from Neosho, Wis. and President of FarmFirst Dairy Cooperative. “And every day, dairy farmers have wondered how much further the markets will drop and how much more their bottom line can erode after already making it through the past five years of challenging markets.”
While many businesses were doing well before COVID-19 hit the economy and shuttered businesses across America, U.S. dairy farmers were already feeling battered and bruised from the past few years after surviving ongoing trade disputes and low commodity prices.
“Today’s announcement by the USDA of direct payments to dairy farmers is greatly appreciated to ensure that they can keep producing wholesome dairy products,” says Rettler. “We urge the USDA to distribute these much-needed funds to dairy farmers as quickly as possible. Time is of the essence as dairy farmers contemplate how to weather this storm of COVID-19.”
“These are unprecedented times for all of us. And it calls for unprecedented support of those in our nation that supply the food to feed us all,” says Jeff Lyon, General Manager for FarmFirst Dairy Cooperative. “We appreciate the work by Congress and the USDA in building this plan to support agriculture. Today is a very important step in what will be a long road of survival and then recovery, and we look forward to working with members of Congress to help determine additional assistance that will ultimately be needed.”
Of the $19 billion dollars, $2.9 billion will be distributed in direct assistance to dairy farmers along with $3 billion being designated for purchases within dairy, produce and meats for donation programs, specifically designating at least $100 million per month in dairy product purchases.
Bruce Kahn says
This new program will help keep the milk flowing into the market. It will be great to see follow up reports on the impact on various farmers. The commodity farming business will continue to be difficult once the pandemic subsides. The impact of the tariffs which depressed dairy and other agricultural exports will be felt for a long time. Commodity prices wil continue to br depressed because of the tariffs and long term market problems. The consolidation of the farm inputs market (fertilizer, insecticide, see and farm implements and the sell side market (Walmart and Costco, the bankruptcies of Beatrice and Dean Foods) will reduce small and large farms’ financial health. The coming years will be no less fraught with anxiety in the farm business than it has for generations.