Health & Medical

USDA Announces Enhancements to the Dairy Security Safe and Recent Pandemic Market Volatility Help Program

First steps in over $2 billion kit of aid for dairy farmers

Burlington, VT, Aug. 19, 2021 — The U.S. Division of Agriculture (USDA) this day announced the important aspects of the Pandemic Market Volatility Help Program as half of meetings with farmers and a tour of farms with Senator Leahy. In June, Secretary Vilsack dedicated to offering further pandemic aid for dairy farmers in an swap at a hearing with Senate Appropriations Committee Chairman Leahy. By device of this system, USDA will present about $350 million in pandemic aid payments to dairy farmers who bought a lower effect for his or her merchandise due to market abnormalities resulted in by the pandemic. The aid is half of a more in-depth kit including permanent improvements to the Dairy Margin Coverage security win program.

“The Pandemic Market Volatility Help Program is one other part of our ongoing effort to rep relief to producers who were left on the again of and invent on our development in the direction of economic recovery,” acknowledged Agriculture Secretary Tom Vilsack. “Family dairy farmers were battered by the pandemic, swap disorders and unpredictable climate and are the life-blood of many rural communities for the length of Vermont, the Northeast and many varied areas. This centered aid is the first step in USDA’s total capability that can total over $2 billion to wait on the dairy industry recover from the pandemic and be extra resilient to future challenges for generations to come again.”

Senator Patrick Leahy (D-Vt.), the chairman of the Senate Appropriations Committee and the senator with the most seniority on the Agriculture Committee, acknowledged: “I thank Secretary Vilsack for steering this aid to miniature dairies in Vermont and across the nation, factual as he told me he would after we spoke earlier in the summertime. This would possibly perchance perhaps presumably also simply wait on to create up for losses suffered by these household farms as a result of pandemic and alongside with the fade adjustments to the Dairy Margin Coverage Program will be right news for farmers trot into the plunge.”

Under the Pandemic Market Volatility Help Program, payments will reimburse qualified dairy farmers for 80 percent of the income inequity month-to-month in line with an annual production of as much as 5 million pounds of milk marketed and on fluid milk sales from July by December 2020. The associated payment payment will fluctuate by role in line with the explicit losses on pooled milk related to cost volatility. USDA will create payments by agreements with independent handlers and cooperatives. Handlers and cooperatives will distribute the monies on the same basis July – December 2020 payments were made to their dairy farmer suppliers and a formula role by USDA. USDA will reimburse handlers and cooperatives for allowed administrative prices.

USDA will contact eligible handlers and cooperatives to reveal them of the chance to seize half in the Program. USDA will distribute payments to collaborating handlers within 60 days of going in an settlement. As soon as funding is provided, a handler will occupy 30 days to distribute monies to qualifying dairy farmers. As half of this system, handlers also will present digital or in-person education to dairy farmers on a unfold of dairy topics readily accessible from USDA or assorted sources. A handler will occupy until March 1, 2022 to straight present tutorial opportunities to dairy farmers.

Additional important aspects about this system are readily accessible and would possibly perchance perhaps presumably simply be as much as this point on the AMS Dairy Program net dwelling.

This system is half of $6 billion of pandemic aid USDA announced in March to address a different of gaps and disparities in previous rounds of aid. Other pandemic aid to dairy farmers entails $400 million for a brand original Dairy Donation Program to address food insecurity and mitigate food wreck and loss; and $580 million for Supplemental Dairy Margin Coverage for miniature and medium farms.

Exterior the pandemic aid, USDA can even create improvements to the Dairy Margin Coverage security win program updating the feed cost formula to better indulge in the explicit cost dairy farmers pay for prime quality alfalfa. This swap will be retroactive to January 2020 and is anticipated to provide further retroactive payments of about $100 million for 2020 and 2021. Not just like the pandemic aid, this swap can even be half of the permanent security win and USDA estimates this would possibly perchance perhaps presumably also simply realistic about $80 million per year or approximately $800 million over ten years for dairy headed into the upcoming Farm Invoice. Beefy important aspects on these further actions to enhance dairy farmers will be provided when guidelines are published in the approaching weeks. Dairy farmers must wait until these important aspects are readily accessible to contact their local USDA Carrier Center for additional records.


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