The dairy industry is calling on President Obama for help. In a letter sent this week to the president, the National Milk Producers Federation asks that the administration take action to help save jobs in rural America. The group notes that on average the input costs for a diary herd now exceed the price of milk by 25% and that the negative cost-price squeeze widened to 30% in February.
In the letter, Jerry Kozak, president and CEO of NMPF, notes that the organization realizes "that many others are also facing very difficult circumstances in this struggling economy. We appreciate and support your efforts to stimulate recovery and we understand that the programs you are implementing will take time to turn thins around."
Kozak notes the organization has worked with Ag Secretary Tom Vilsack to explore ow to use the Dairy Product Price Support Program along with a temporary activation of the Dairy Export Incentive Program to boost demand. The group wants the government to turn up the heat on efforts including school lunch programs that can draw down milk supplies in an effort to bolster sagging prices.
The group claims that farm failures associated with the dairy crisis could cost as many as 30,000 jobs in the agricultural economy.