The U.S. Department of Agriculture has agreed to purchase $20 million worth of cheese products to help dairy farmers who have been suffering from low milk prices. The National Milk Producers Federation, American Farm Bureau, National Farmers Union and members of Congress had requested the assistance. Federation’s Chris Galen says he’s pleased the USDA acted rapidly, although they had asked for larger purchases.
Minnesota Milk Producers Association President Pat Lunemann says by purchasing the cheese the Ag Department is reducing a cheese surplus on the market that is at its highest level in 30 years.
Galen says there may be more the USDA can do next month to aid the ailing dairy industry.
Milk prices for farmers have plunged 13-percent in the past year to $14.80 per hundred pounds hitting their lowest level in five years. Dairy producer revenues have dropped 35-percent in the last two years.
