In a quick response to a crisis in the dairy industry and to requests from the Vermont congressional delegation, U.S. Agriculture Secretary Tom Vilsack on Friday lifted the floor price for dairy products. “I appreciate the secretary's quick response to our request. This is a good start but much more needs to be done if Vermont dairy farmers are going to receive a fair price for their product. My office continues to look at all available options to raise milk prices for family-based dairy farms, including expanding the MILC program and investigating monopolistic practices in the dairy industry.”

The department estimated that the temporary increases in effect until October will boost dairy farmers' overall revenue by $243 million. Vilsack said the price increase will provide immediate relief, helping to keep dairy farmers on the farm while they weather what he called "one of the worst dairy crises in decades."

The increase will raise the price paid for nonfat dry milk from $0.80 per pound to $0.92 per pound, the price paid for cheddar blocks from $1.13 per pound to $1.31 per pound, and the price of cheddar barrels from $1.10 per pound to $1.28 per pound.

The decision was announced two days after Vermont’s senators and a coalition of lawmakers from other dairy states met with Vilsack. The meeting was organized by Senator Patrick Leahy, the senior member of the Senate Agriculture Committee, to seek a short-term hike in the price the federal government pays for milk and dairy products in the marketplace. 

“Secretary Vilsack became our partner in getting this done, and we are grateful that dairy farmers have a true ally at USDA,” Leahy said.  “Government dairy purchases are part of the overall safety net, but in this case we also want these purchases to be a catalyst to help stabilize the downward spiral in milk prices.  Dairy farms in Vermont and across the nation are hurting, and this is the fastest and most direct short-term step that’s available to stop the bleeding.  We will continue to push for other relief but those steps will take longer.”

Representative Peter Welch added, “Secretary Vilsack’s decision is good news for dairy farmers and good news for Vermont. While it’s clear that this is a short-term remedy and not a long-term solution to the crisis facing the dairy industry, this much-needed support for family farmers will help them weather the storm. I applaud Secretary Vilsack’s action and I look forward to continuing the fight for Vermont’s dairy farmers.”

On July 15, Sanders sent a letter to Secretary Vilsack which described a number of actions the department could take to address the crisis faced today by family dairy farms.  Sanders called on USDA to “increase the dairy product price support program levels.  To read the letter, click here.