NMPF breaks down new relief dollars for dairy
The head of the National Milk Producers Federation says the COVID assistance package includes nearly $1 billion in targeted support to help dairy farmers who continue to face volatility throughout the pandemic.
Jim Mulhern tells Brownfield markets and foodservice demand continue to look challenging for next year and he would like to see support for food distribution programs maintained.
“We don’t have the level of sales opportunities that we normally have—that means that milk prices may be soft throughout the first half of next year.”
The new relief funding includes $400 million for a new Dairy Donation Program to provide dairy products to food-insecure households and minimize food waste. Dairy processors can be reimbursed through the program for processing costs and the cost of milk which has been donated, and it is open to all dairy products.
Supplemental Dairy Margin Coverage Payments are available for farms that have increased their production history since 2014.
National Milk says the bill includes more flexibility on payment limits for farmers who were unable to receive the full support they needed under CFAP because of payment limitations.
Dairy producers will also be eligible for support in the $11 billion ag disaster assistance package Congress has included in the package, and at least $1.5 billion of the funding is dedicated to additional product purchases.