milk price support - spring. Craig Lang, a dairy farmer...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
August 2, 2009 USDA increases price supports to aid struggling dairy farmers by PHILIP BRASHER & DAN PILLER business@dmreg.com The Obama administration moved Friday to aid dairy farmers by temporarily raising industry price supports - an action that will result in government purchases of cheese and dried milk. Dairy producers expanded their herds in response to soaring milk prices in 2007 and 2008, but feed costs also jumped and prices have plunged this year. The boost to price supports should increase farmers' revenue by $243 million from August through October, according to the U.S. Department of Agriculture. Because of the increase, the department will purchase 150 million pounds of nonfat dry milk and 75 million pounds of cheese. The average price of milk fell from a peak of $21.70 per hundred pounds two years ago to $12 this
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: spring. Craig Lang, a dairy farmer from Brooklyn who is president of the Iowa Farm Bureau Federation, told the House Agriculture Committee last week that the drop in prices wiped out the cash he had put away when prices were high. He said his farm's milk is fetching about $3 per hundred pounds less than his break-even price. But Lang, who testified on behalf of the American Farm Bureau Federation, called for the Agriculture Department to leave the price supports alone. Increasing price supports "has the strong potential to send the wrong signal to the market to increase or at least maintain, rather than to decrease, production," he wrote in a statement. The National Milk Producers Federation, however, praised the administration's move, saying it is needed to help farmers cope with the price drop. - Philip Brasher...
View Full Document

This note was uploaded on 02/14/2010 for the course ECO 304K taught by Professor Hickenbottom during the Spring '10 term at University of Texas at Austin.

Ask a homework question - tutors are online