Administration Considering Hike in Milk Price Supports

Administration Considering Hike in Milk Price Supports

Senators support raising support prices for dairy.

Dairy prices are projected to hit bottom later this year, a bottom that according to USDA will be the lowest annual average price since 1979. World Ag Outlook Board Chair Gerry Bange expects a stronger price next year. But how many producers will still be in business then without help? Dairy-state Senators say help is coming. They say Ag Secretary Tom Vilsack has agreed to temporarily raise milk price supports. 


A group of 23 Senators hope to move things along. They have sent a letter to White House Office of Management and Budget Director Peter Orszag urging him to act promptly to approve the plan. Senator Patrick Leahy, D-Vt., says the problem is nationwide and dairy prices must be raised, but the move is classified as a short-term solution.


From January through April of this year the all-milk price averaged $4.80 per hundredweight below the U.S. average cash cost of production. Industry officials estimate dairy farmers currently are losing $100 per cow per month.

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