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Farm groups react to USDA cheese purchase

CheeseFarm groups say they want more done to help struggling dairy farmers.  Ag Secretary Tom Vilsack has authorized the purchase of 11 million pounds of cheese for food programs and an extension to sign up for the Margin Protection Program.

The National Milk Producers Federation’s Chris Galen applauds Vilsack’s response, after calling for a much larger cheese purchase last week. Galen tells Brownfield they understand the limited finances USDA has near the end of the government’s fiscal year.  “We’ll continue to assess the situation.  Will markets respond?  How are they turning around?  And, if we don’t see enough positive response, we’re going to continue to recommend ways to help farmers endure the price slide that they faced.”

Government Relations Representative Zach Clark, with the National Farmers Union says they appreciate what the Secretary and USDA have done but it’s not enough because dairy prices fell 40% in 2015 and another 13% this year.  He says, “We’re really needing something more robust.  The original request to USDA was something in the 100 to 150 million dollars worth of cheese purchases, so 20 million really falls short of that.”  Clark estimates the USDA purchase would only increase cheese prices by around 16%, and the NFU is urging Congress to help.

Not every group is seeking large amounts of aid.  American Farm Bureau Federation’s John Newton says they had asked USDA to purchase up to 50 million pounds of cheese, so Vilsack’s decision is the type of impact they were seeking.  He tells Brownfield, “One of the key things is you didn’t want to do anything that would result in an oversupply of milk or that would disrupt our competitive position as a dairy exporter, and yesterday’s announcement is that type of market impact that should not be distortionary.”

Newton says they are already discussing possible dairy safety net changes with their members in preparation for the next farm bill.

The Margin Protection Program deadline has been moved to mid-December.

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