USDA raises dairy price support levels
Effective through the end of October, price support levels are being raised nearly 16 percent. The price support for nonfat dry milk is raised from 80 cents a pound to 92 cents. The block Cheddar support is raised from $1.13 a pound to $1.31. Barrels move from $1.10 to $1.28. The butter support apparently was not changed. The USDA projects that this rise in support levels will generate an additional $243 million in revenue for dairy farmers between now and the end of October.
Under the price support program, USDA serves as the buyer of last resort to help clear commodity dairy markets during periods of exceptionally low farm-level prices, explains the National Milk Producers Federation (NMPF).
Earlier this year, USDA had liquidated 200 million pounds of surplus milk powder, reauthorized the Dairy Export Incentive Program, and expedited payments under the MILC program.
Labels: Dairy price supports; National Milk Producers Federation