The Biden administration expanded a pandemic relief program for dairy farmers on Monday to cover up to 9 million pounds of milk produced during the second half of 2020, up from the original 5 million pounds. The Agriculture Department also announced a new assistance program for organic dairy farmers, who face sharply higher feed expenses.
Up to $100 million was available under each initiative to help small and medium-sized dairy farms “who weathered the pandemic and now face other challenges,” said the USDA. More than $250 million was paid to 25,000 dairy farmers through the Pandemic Market Volatility Assistance Program earlier.
The new round of payments “will close out the $350 million commitment” to the PMVAP, said Agriculture Undersecretary Jenny Moffitt. The PMVAP covers up to 80 percent of the drop in revenue from milk that was produced from July through December 2020. The initial ceiling of 5 million pounds of milk is equivalent to the output of 400 cows over six moths and the 9 million-pound limit is equal to production from 750 cows in six months.
With the new Organic Dairy Marketing Assistance Program (ODMAP), USDA will offset up to 75 percent of projected marketing costs for this year by organic dairy farmers. Payments will be available on up to 5 million pound of anticipated milk production. The program is still in development and details will be released later in the year.
“Many small organic dairy operations are now struggling to stay in business,” said the USDA.
Organic trade groups and businesses called for federal aid last fall because of abnormally high feed costs, due to drought in the West and Russia’s invasion of Ukraine. “Beyond the ODMAP, organic dairy and poultry farmers still need further support,” said the Organic Trade Association, while thanking USDA for the aid. “This action is critically necessary to ensure the livelihood of many organic dairy farmers.”
The National Milk Producers Federation tempered its appreciation for the second round of pandemic payments with criticism of “an inadequate Class I pricing system” that needs repair. The organization said it would continue its work “to remedy losses among dairy farmers of all sizes, as well as for those farmers unable to receive program funds because their milk was not pooled on a Federal Milk Marketing Order but still endured similar price losses.”