USDA raises dairy price support levels

USDA announced a jump in dairy price support levels in an attempt to alleviate the financial stress U.S. dairy farm families are facing.

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.

“Once again, Ag Secretary Vilsack has used the tools at his disposal to help dairy farmers cope with the extreme drop in milk prices,” said Jerry Kozak, president and CEO of NMPF.