[Marxism] Nutrition programs to use surplus milk

[sabocat59@xxxxxxx]

Nutrition programs to use surplus milk 

By MARC HELLER TIMES WASHINGTON CORRESPONDENT FRIDAY, MARCH 27, 2009 ARTICLE 
OPTIONS A A A     WASHINGTON — The U.S. Department of Agriculture will unload 
about 200 million pounds of surplus milk powder through nutrition programs to 
ease the pain of low milk prices for farmers, Agriculture Secretary Tom Vilsack 
said Thursday. Mr. Vilsack said in a conference call with reporters that he is 
also considering additional measures, including more government-sponsored dairy 
exports, but wanted to act as quickly as possible on measures that aren't 
likely to raise complaints from U.S. trade partners."There are real human 
consequences to delay," said Mr. Vilsack, who has visited with dairy farmers 
and noted that he met the wife of one farmer who committed suicide. "I think 
this is going to provide some hope."The department will direct much of the 
product to school lunch and other domestic feeding programs, as well as giving 
30 million pounds to states for use in fluid milk and macaroni and cheese for 
nutrition programs. 

The USDA has already bought the milk powder through the federal milk price 
support program, much of it from California, the nation's top milk producing 
state and a place that has seen some of the worst of the crisis. Officials said 
Thursday's announcement addresses two problems: the record-breaking fall in 
milk prices paid to farmers and increased needs at food pantries and other 
programs around the country."This is a win-win for everyone," Mr. Vilsack 
said.The secretary's action met demands from dairy-state lawmakers and farm 
groups, which had been urging him to use government purchases since milk prices 
took a dive in February. But he left unanswered the most challenging question: 
how the government can help dairy farmers maintain a living while keeping the 
plants that buy their milk profitable — an issue that determines the livelihood 
of many Northern Yorkers. As long as that puzzle remains unsolved, dairy 
experts say, prices will recover temporarily, only to crash again in a few 
years.

This year's decline has been especially harsh and could put dozens of north 
country farms out of business, farm experts say. Prices paid to farmers — which 
are determined largely by the federal government — are now well below the cost 
of production and are likely to stay there for months, economists say, until an 
improved economy and more cow retirements trim supplies and boost demand. 

Some economists predict sharply higher prices by late 2010. How much the 
government donations will affect milk prices remains to be seen. "We're clearly 
going to have some price enhancements," said Jerome Kozak, president and chief 
executive officer of the National Milk Producers Federation, who joined Mr. 
Vilsack for the announcement. The federation represents farmer-owned bargaining 
cooperatives that sell milk to plants. The national food charity program 
Feeding America also joined Mr. Vilsack. 

New York lawmakers and farm groups cheered the action as well."Dairy farmers 
across New York State are struggling," said Sen. Charles E. Schumer, D-N.Y., in 
a press release. "We must do anything we can to increase demand and this 
program is a terrific start."New York Agriculture Commissioner Patrick Hooker 
said, "This decision is win-win for both the low income families struggling to 
put nutritious food on their tables, as well as dairy farmers who are 
struggling with low milk prices, due in part to the surplus of dairy products 
in storage."Hinting at debates to come, however, Mr. Hooker added that the food 
donation is "a small and temporary fix to a much greater problem."The USDA next 
turns to the Milk Income Loss Contract Program, which pays farmers when milk 
prices fall below federal targets. Mr. Vilsack said he will announce details 
next week on the next round of payments, which have been delayed because of a 
new requirement that the department account for feed costs.

Reps. John M. McHugh, R-Pierrepont Manor, and Michael A. Arcuri, D-Utica, wrote 
to Mr. Vilsack on Thursday, urging him to expedite MILC payments. Mr. Vilsack 
said the department is also considering ways to boost dairy exports, which 
would further shrink milk supplies. But reviving subsidies could spark a trade 
fight, which the USDA has been trying to avoid.He also declined to make minor 
adjustments in the system for setting minimum milk prices that some 
organizations have sought. Even bigger issues remain unresolved. Mr. Vilsack 
gave no indication when he will establish a milk pricing commission required by 
the 2008 farm bill; that commission will explore a wide range of matters, 
including the milk marketing orders that set minimum prices plants must pay 
farmers around the country."I'm sure going to do this on a timely basis," Mr. 
Vilsack said. But he noted that the USDA is still assembling a senior appointed 
staff and that he has been occupied with "most immediate needs" such as the 
economic recovery plan.

Some farm groups have urged the government to encourage more competition in the 
dairy industry, which is dominated by a few cooperatives, food companies and 
supermarkets.The House Agriculture Committee may hold a hearing soon on milk 
prices, and dairy-state lawmakers have urged the Senate Agriculture Committee 
to do the same. The Senate committee's chairman, Sen. Tom Harkin, D-Iowa, has 
made no commitment, but Sen. Patrick J. Leahy, D-Vt., is seeking a hearing in 
April or May, a spokesman said.
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