Thursday, November 19, 2009

The check is in the mail

Well, the direct payment checks coming to dairy farmers may not be in the mail, but they will be soon. That was the message from Under Secretary of Agriculture Jim Miller who spoke to the 1,000 people attending the joint annual meetings of the National Dairy Board, United Dairy Industry Association, and the National Milk Producers Federation at Grapevine, Texas.

The direct payments were authorized and funded in an amendment to the Senate ag appropriations bill. $60 million of the $350 million measure was earmarked for purchases of cheese for government feeding programs and food banks. There was pressure from the dairy industry to use all of the $350 million to purchase and distribute product to help draw down dairy product inventories. It was thought that that action would have provided more lasting price relief for dairy farmers. However, making direct payments with $290 million seemed to turn out to be the most acceptable alternative politically.

Under Secretary Miller told those at the meeting that dairy farmers should expect their direct payment checks by the end of December or, possibly, as early as mid-December.

Miller also said that USDA received more than 300 nominations for the new USDA dairy advisory committee. He expected USDA would make an announcement on the makeup of that committee “within the next few weeks.”

Watch for more about the joint NDB/UDIA/NMPF meeting in the December issue of the magazine.

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