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Blunt, Stabenow Lead Letter to USDA Urging Implementation of Farm Bill Dairy Improvements

Bipartisan group of 38 senators urge quick implementation to provide relief for dairy farmers across the country

March 29, 2019

WASHINGTON – Today, U.S. Senators Roy Blunt (Mo.) and Debbie Stabenow (Mich.), Ranking Member of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, led a bipartisan letter urging Agriculture Secretary Sonny Perdue to prioritize the implementation of the dairy provisions in the 2018 Farm Bill.

As dairy farmers across the country continue to struggle from market instability, the 2018 Farm Bill expands support for small and medium-sized dairy farms, providing flexible, affordable coverage options through the Dairy Margin Coverage program. Early analysis has shown that the improvements would provide much-needed financial support to dairy farmers – providing significant benefits for all operations and up to 5 times as much support for the smallest farms.

“The situation for dairy farmers is urgent,” the senators wrote. “Although Dairy Margin Coverage is effective as of January 1, 2019, the government shutdown delayed action on 2018 Farm Bill implementation for over a month. During this time, dairy farmers have continued to face market instability and are struggling to survive the fourth year of sustained low prices. …

“The changes to the Dairy Margin Coverage program make it a much more flexible policy that will likely benefit many of the farmers who chose not to participate in the Margin Protection Program. The USDA should strongly encourage these farmers to consider the Dairy Margin Coverage program. …

“In the interim, we request that the USDA invest in outreach, training, coordination with partner organizations, and staffing to ensure that every eligible farmer receives personalized information about the new and improved options.”

The 2018 Farm Bill also made several other important changes to address the needs of dairy producers, including: a study on the feed components of the margin calculation, a provision to counteract the disincentive for milk donation, continuation of forward contracting, an update to the Class I pricing formula, and a partial refund or credits from premiums paid under the former Margin Protection Program.

The letter, led by Senators Blunt and Stabenow, was also signed by Sens. Patrick Leahy (Vt.), Mike Crapo (Idaho), Dianne Feinstein (Calif.), Jerry Moran (Kan.), Christopher Murphy (Conn.), James E. Risch (Idaho), Patty Murray (Wash.), M. Michael Rounds (S.D.), Robert P. Casey, Jr. (Pa.), Susan M. Collins (Maine), Richard Blumenthal (Conn.), John Thune (S.D.), Chris Van Hollen (Md.), Charles E. Grassley (Iowa), Bernie Sanders (Vt.), Cory Gardner (Colo.), Amy Klobuchar (Minn.), Tina Smith (Minn.), Tammy Baldwin (Wis.), Sherrod Brown (Ohio), Angus S. King, Jr. (Maine), Kyrsten Sinema (Ariz.), Jeanne Shaheen (N.H.), Gary C. Peters (Mich.), Charles E. Schumer (N.Y.), Margaret Hassan (N.H.), Jeffrey A. Merkley (Ore.), Thomas R. Carper (Del.), Christopher A. Coons (Del.), Ron Wyden (Ore.), Joni K. Ernst    (Iowa), Elizabeth Warren (Mass.), Josh Hawley (Mo.), Kirsten E. Gillibrand (N.Y.), Michael F. Bennet (Colo.), and Maria Cantwell (Wash.).



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