ALBANY— New York Farm Bureau president Dean Norton is urging the state's congressional delegation to help bring immediate crisis relief to dairy farmers, who are suffering through one of the most dramatic milk-price drops in state history. Farm Bureau is recommending six immediate solutions that could ease the pricing crisis.
"These recommendations provide a short and long-term strategy for practical and meaningful economic solutions to the immediate and long-term challenges facing New York's dairy community," Norton said in a letter to the delegation recently.
"There is little doubt that dairy farms will not be able to sustain their businesses in this fiscal climate unless decisive action is taken," Norton said.
Farm Bureau also sent a letter to Agriculture Secretary Tom Vilsack and has talked extensively with State Agriculture Commissioner Patrick Hooker about solutions to the crisis.
Dairy producers are struggling to meet their financial commitments because of historically low milk prices coupled with erratically high energy, feed and fertilizer costs. The dairy industry is the largest segment of agriculture in New York, with roughly 6,200 producers statewide.
The slumping economy has softened demand for dairy products in both domestic and foreign markets, creating a surplus of dairy product further driving down prices.
In January, the average price that farmers received was $13.39 per hundredweight, or $1.15 per gallon, which is far below the average break-even cost of $17.50 per hundredweight or $1.50 a gallon.
Farm Bureau is calling on New York congressional delegation to urge USDA to take the following action: NYFB is asking for an increase of the Milk Income Loss Contract payment program. MILC payments are triggered when the Class I price in Boston has fallen below $16.94 per cwt. The base payment rate is any positive difference between $16.94 and the Class I milk price at Boston, times 45 percent. Payments under the program are limited by production. Producers are eligible to receive payments on up to 2.985 million pounds per fiscal year.
Provide immediate, additional funding for the Milk Income Loss Contract payment program through supplemental appropriation and/or the FY 2009 Agriculture Appropriations Bill.
NYFB is asking USDA to utilize commodity data that more accurately reflects northeast feed costs as part of the MILC payment rate formula. Feed commodity data should be based on northeast or New York State feed costs for calculation of the feed cost adjuster, which determines the MILC payment rate. The current commodity-cost data is based on feed costs from the Midwest and shortchanges New York farmers by not basing the MILC payment rate on true Northeast feed costs.
Move dairy powder off the domestic market by fully utilizing the Dairy Export Incentive Program and Food for Peace program to offset overproduction.
Reinstate the Northeast Interstate Dairy Compact to provide long-term sustainable support to the dairy industry. The original compact, which was operational between 1996 and 2001, allowed New York and the six New England states to join together to set a fluid-milk price above the federal minimum milk price.
Make immediate dairy-product purchases for WIC and other nutrition programs. Those programs received large increases in funding from the stimulus package.
"Each of these measures will provide relief to the economic challenges facing New York's dairy farmers and effectively preserve domestic dairy production," Norton said. "Most importantly, these measures will maintain the economic backbone of New York's rural communities and agriculture infrastructure."
New York Farm Bureau is the statewide lobbying/trade organization that represents thousands of member families. Its members and the public know the organization as "The Voice of New York Agriculture." New York Farm Bureau is dedicated to solving the economic and public policy issues challenging the agricultural community.
Local News
Farm Bureau urges fix for dairy crisis
- Local News
-
-
Governor visits North Country to promote budget package
Delights huge crowd at Plattsburgh State in promising to continue reform in Albany. INCLUDES VIDEO
-
Boundaries may remain as is
Franklin County has started work on redistricting, but legislators say the population probably didn't change enough to warrant a new plan.
-
Marble River Wind Farm work continues
The 72-tower project in the towns of Ellenburg and Clinton is expected to be operational in October.
-
New technology helps history, tourism, arts
Adirondack Architectural Heritage in Keeseville hosted a presentation on using Facebook as part of marketing strategies.
-
Body likely missing Fort Covington man
Dustin Trimm of Winthrop charged with murder.
-
Pipeline work on hold
A natural-gas boom in Pennsylvania increased demand for specialized workers and has doubled the expected construction costs for the 48-mile St. Lawrence Gas line through Franklin County.
-
Many agencies working together on waterway remediation
In Keene Valley on Thursday, officials and citizens visited a cross-weir on John's Brook designed to protect both the environment and the bridge there from future flood damage.
-
Robert Russell to the rescue
The 6-year-old Peru boy was recognized for thinking quickly to call 911 when his mother had a seizure.
-
Powerful savings— for now
National Grid is ending collection of one fee and beginning collection of a smaller one, leaving residential and business customers with lower bills in 2012.
-
Appeal mostly denied for Tupper Lake man
Travis K. Borden was convicted in 2010 of sexually assaulting a 15-year-old.
-
Sharing dough
Students in Ticonderoga learned to make bread from scratch from King Arthur Flour's free Life Skills Baking Program.
-
City approves surcharge for dam repairs
Funds will go toward paying off long-term bond for infrastructure improvements.
-
Car chase nets arrest
Lance D. Lamora allegedly fled police in the City of Plattsburgh on Monday night; he faces numerous misdemeanor charges, including driving while intoxicated.
-
Of Interest: Feb. 3, 2012
DWI crackdown runs today through Sunday; Venue changes for Crown Point meeting; Dannemora Village to work on budget; Saranac School Board to meet Feb. 7.
-
Westport Branch of Latter-day Saints closes
Lack of members cited for closure; Westport members merge with Middlebury, Vt., ward.
- February 2, 2012
-
Pipeline on hold
A natural-gas boom in Pennsylvania increased demand for specialized workers and has doubled the expected construction costs for the 48-mile St. Lawrence Gas line through Franklin County.
-
Strand Theatre fundraising on home stretch
It has about $800,000 left to raise for the $4 million project.
-
Appeal mostly denied for Tupper Lake man
Travis K. Borden was convicted in 2010 of sexually assaulting a 15-year-old.
-
Governor visits North Country to promote budget package
- Recent Article Comments
Killer of Fla. Girl Found in Landfill Gets Life
Army Orders Bradley Manning Court-martial
Cancer Charity Revives Breast-screening Grants
Heavy Snowstorm Hits Colorado On Its Way East
2nd Teacher From LA School Arrested on Sex Claim
Prosecutors Close Armstrong Inquiry, No Charges
Sights and Sounds: Football Fans Pour Into Indy
Unemployment Rate Down to 8.3%
Obama: Still Far Too Many Americans Need Jobs
GOP: Jobs Numbers Welcome, Can Do Better
Fla. Man Adopts Girlfriend in Legal Battle
More Deaths As Egypt Clashes Continue
Raw Video: Prince William in Falklands
Egpyt Protesters Blame Police for Soccer Deaths
'Lucky' 9-Year-Old Receives 6-Organ Transplant
Raw Video: Michelle Vs. Ellen in Pushup Contest
First Person: Will Peyton Manning Stay in Indy?
Egypt Shaken After Deadly Soccer Riot
New Suits, New Starts for New York's Unemployed
Hall of Famer Dorsett Speaks Out on NFL Injuries
