News

A closer look at the CFAP assistance for dairy

The USDA has rolled out the details of the Coronavirus Food Assistance Program and ag economists say this is good news for the dairy industry.

University of Missouri’s Scott Brown says for first-quarter production producers will receive $4.71 per cwt.  “That’s on their first-quarter production, that would mean any milk that was dumped as well would be eligible for that payment,” he says.  He tells Brownfield there’s a second part to that payment that’s associated with losses producers experienced in the second quarter. “It’s going to be a national adjustment to each producer’s first-quarter production multiplied by $1.47,” he says.   

Katelyn McCullock, director of the Livestock Marketing Information Center says the payments should go a long way to help farmers carry-on despite the losses earlier this year.  “When those checks arrive and how long you have to go at some of these lower prices is probably going to depend farm by farm,” she says, “Depending on how their financial situation lies and what their positioning is.”

Brown and McCullock participated in Brownfield’s discussion about the impact of COVID-19 on the dairy industry.   

The full discussion will be available online HERE.