MARKEY HAILS USDA AID FOR FARMERS
USDA takes swift action to boost dairy price supports
Washington,
Jul 31, 2009 -
Congresswoman Betsy Markey today welcomed an announcement by Secretary of Agriculture Tom Vilsack, that the USDA taking immediate action to support struggling dairy farmers by increasing the amount paid for dairy products through the Dairy Product Price Support Program (DPPSP).
USDA estimates show that these increases, which will be in place from August 2009 through October 2009, will increase dairy farmers' revenue by $243 million.
“This is great news for Colorado dairy farmers,” said Rep. Markey. “Since January, dairy product prices have continued to decline and have at times dropped well below price support levels, adversely affecting farmers’ incomes. I am very pleased that Secretary Vilsack has responded so quickly, and I look forward to working with him to Colorado’s farmers and ranchers strong.”
Last week, Rep. Markey sent a letter to Secretary Vilsack urging swift action to assist dairy farmers in Northern Colorado.
Full text of Congresswoman Markey’s letter to Secretary Vilsack:
July 23, 2009
The Honorable Tom Vilsack
Secretary of Agriculture
U.S. Department of Agriculture
1400 Independence Avenue, SW
Washington, DC 20250
Dear Secretary Vilsack:
I greatly appreciate your efforts during this difficult year to support and aid dairy producers during this dairy crisis. Dairy farmers, rural communities, and I greatly appreciate the Department of Agriculture’s dairy product purchases and use of the Dairy Export Incentive Program (DEIP), both of which have been very much needed.
Unfortunately, since this January, dairy product prices have continued to decline and have, at times, dropped well below price support levels, adversely affecting farmers’ incomes.
I urge you to take all possible action to improve the effectiveness of the Dairy Product Price Support Program (DPPSP) in order to boost milk prices. When Congress authorized the DPPSP, it provided the USDA with the authority and flexibility to set higher price levels when necessary. I strongly encourage you to use the authority under the Farm bill to temporarily raise Commodity Credit Corporation (CCC) purchase prices, consistent with pay-as-you-go policies, for the DPPSP.
Furthermore, I encourage you to take additional action to aid the dairy industry: harmonize CCC dairy product packaging and grading standards with those used in commercial sales on the Chicago Mercantile Exchange (CME). The differences between these two standards make dairy producers and dairy product manufacturers hesitant to sell surplus to the CCC, even though such sales could help stabilize milk prices.
The World Trade Organization’s (WTO) accounting period began on July 1, 2009. I understand that due to the brief period between DEIP’s becoming operational and June 30, the full allocation for this past accounting period was not used. However, if an announcement is made soon to encourage utilization of USDA dairy programs, the full allocation under this new WTO accounting year can be utilized, to the benefit of the United States and dairy producers.
In addition, many food banks, feeding programs, and other domestic nutrition programs continue to run short on dairy products and would benefit from encouraging USDA dairy programs. I urge you to use the Department of Agriculture’s available authority to address these enduring needs and promote the success of the U.S. dairy industry.
Sincerely,
Betsy Markey
Member of Congress
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