After meeting Wisconsin dairy farmers, Agriculture Secretary Tom Vilsack announced the second government purchase of surplus cheese in two months to offset a 33 percent drop since 2014 in the farm-gate price of milk. As in August, USDA will buy $20 million of cheese for donation to food banks and poor people.
The National Milk Producers Federation said the purchases “will provide assistance to America’s dairy farmers through increased demand for milk.” The trade group, which called during the summer for up to $150 million in cheese purchases, said Congress needs to strengthen the dairy program to make it an effective safety net.
Growth in the U.S. dairy sector “is largely contingent on trade,” says a USDA report that estimates the Trans-Pacific Partnership trade pact would boost dairy exports by $150-$300 million a year. The Obama administration, which negotiated TPP, is pressing for vote on the free trade agreement during the post-election session of Congress. Both presidential candidates,Hillary Clinton and Donald Trump, oppose it.