Our industry has spent a great deal of time and energy on the farm bill's Margin Production Program for Dairy (MPP-Dairy). However, should an economic downturn hit our industry, of equal importance will be the Dairy Product Donation Program.
When asked about how that program might look, USDA Secretary Vilsack shared some of his thoughts with the media covering the joint annual meeting of the National Milk Producers Federation and Dairy Management, Inc., in Dallas, Texas, in late October. To hear the secretary's exact comments, click to listen to the two-minute audio file.
Should margins, minus feed costs, fall under $4, USDA will have at its disposal the tools to take dairy products off the market. The concept would be to purchase product when there is excessive supply chasing fewer buyers. It is similar to systems in place for almonds, cherries, peaches and tomatoes.
Certainly, we hope that we don't encounter that situation. However, should it happen, USDA could purchase dairy products and use them in school lunch, emergency food assistance programs or both.
To learn more or to comment on the Dairy Donation Program, go to http://on.hoards.com/Dairy-donation-program-comment. Comments are due by December 15.
