Burlington Free Press: "Vermont dairy farmers receive $5.7M in federal aid" PDF Print E-mail
Sunday, 03 January 2010 23:00

By Dan McLean, Burlington Free Press

Nearly $6 million in federal aid is being dispersed to Vermont's dairy farmers to help offset a portion of the heavy losses from the collapse in milk prices this year.

More than 1,000 Vermont dairy farmers are set to receive $5.7 million, Sen. Bernie Sanders, I-Vt., announced Thursday. The aid is part of a $350 million dairy assistance measure sponsored by Sanders and supported by Sen. Patrick Leahy, D-Vt., and Rep. Peter Welch, D-Vt. The U.S. Department of Agriculture began processing payments under the Dairy Economic Loss Assistance Payment program last week.

This aid program translates into a payment of about $8,000 to the typical Vermont farmer, assuming about 125 cows. Even with the aid payments, dairy farmers throughout state will be left reeling from a year of record low prices, caused by a glut in milk supply and waning demand.

The typical Vermont dairy farm lost $100,000 this year, said Bob Wellington, an economist for Agri-Mark Inc, which represents 1,200 dairy farms in New England and New York.

The dairy assistance measure provides $290 million for direct support to dairy farmers and another $60 million set aside nationwide to purchase cheese for food banks and nutrition programs. Vermont's congressional delegation is working with dairy leaders on long-term reforms to the dairy industry to alleviate the boom-and-bust cycles that pummel the state's dairy farmers.

Sanders said the current round of payments will prove to be "a real help in keeping many Vermont farms viable and in business," but added that reforms are needed for the complex dairy pricing system.

"The truth is, however, that we need long-term solutions to the dairy crisis in order to create a situation where farmers receive fair and stable prices for their product," Sanders said. "My office is now working with dairy farmers and their organizations in Vermont and around the country to examine how we go forward -- including the need for supply-management."

In 1999, there were 1,782 dairy farms in Vermont. In December, that tally had fallen to 1,026, according to data from the Vermont Agency on Agriculture.

"Slumping revenues have pushed dairy farmers to the brink, and these payments will help many to hang on," Leahy said.

Payments depend on the size of the farming operations. Franklin and Addison counties received the most.

Here is a breakdown by county:

• $1.2 million for Addison County;

• $89,000 for Bennington County;

• $378,000 for Caledonia County;

• $242,000 for Chittenden County;

• $113,000 for Essex County;

• $1.5 million for Franklin County;

• $115,000 for Grand Isle County;

• $162,000 for Lamoille County;

• $372,000 for Orange County;

• $731,000 for Orleans County;

• $274,000 for Rutland County;

• $143,000 for Washington County;

• $139,000 for Windham County;

• and $114,000 for Windsor County.

Welch recognized the payment will still leave farmers with hefty losses for the year. "While this emergency assistance will be helpful to many farmers struggling to hold on until prices rebound, it is clearly just a drop in the barrel," Welch said.

The average price farmers received for their milk fell this year to as low as $11.30 per hundredweight, down from $19.30 in July 2008. Prices have recently rebounded to $15 per hundredweight; a hundredweight is 11.6 gallons. Vermont dairy farmers have said it costs about $17 to $18 per hundredweight to produce milk.

 
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