Administration Considering Hike in Milk Price Supports

Dairy prices are projected to hit bottom later this year, a bottom that according to USDA will be the lowest annual average price since 1979. World Ag Outlook Board Chair Gerry Bange expects a stronger price next year. But how many producers will still be in business then without help? Dairy-state Senators say help is coming. They say Ag Secretary Tom Vilsack has agreed to temporarily raise milk price supports. 

A group of 23 Senators hope to move things along. They have sent a letter to White House Office of Management and Budget Director Peter Orszag urging him to act promptly to approve the plan. Senator Patrick Leahy, D-Vt., says the problem is nationwide and dairy prices must be raised, but the move is classified as a short-term solution.

From January through April of this year the all-milk price averaged $4.80 per hundredweight below the U.S. average cash cost of production. Industry officials estimate dairy farmers currently are losing $100 per cow per month.