CWT members support two-year committment

With production costs far exceeding the price dairy farmers are receiving for their milk, the members of Cooperatives Working Together voted Tuesday to fund the self-help program for two full years, from Jan. 2009 through Dec. 2010, to help bring the dairy supply into balance with shrinking demand. “America’s dairy farmers are looking to CWT to help them overcome the dire financial circumstances they are facing,” said Jerry Kozak, President and CEO of NMPF, which manages CWT.

The decision to fund CWT for another two years is predicated on achieving the participation of a 67% supermajority of the nation’s milk supply at the current 10 cent per hundredweight membership assessment, Kozak said.

CWT’s members also approved two changes in program policy. First, all members whose bids are accepted in future herd retirement programs will agree and warrant to cease dairy production for one year. This warranty will apply to both the producer and his/her dairy facility.

The second change is that farmers who were successful participants in past CWT herd retirement rounds will be permitted to bid in the next herd retirement round that CWT conducts.

Kozak also noted that CWT has not solicited government financial assistance. He indicated that a prominent agricultural lender will provide CWT a line of credit tied to the level of funding that CWT members are committing to invest in the organization over the next two years.