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Congressman Paul Tonko (NY-21) joined his colleagues on the Congressional Dairy Caucus in an hour-long meeting Thursday afternoon with Agriculture Secretary Tom Vilsack, asking for immediate action from the Department of Agriculture to blunt the effects of the sharp downturn in the economy, which have been nearly catastrophic for many medium and small dairy farms throughout the 21st Congressional District.

Rep. Tonko said: “While we have regional differences from the Northeast to the Midwest to the West Coast, one thing is clear: the dairy industry in our country is facing a crisis.  We must continue to take action that will enable so many, in our region, to continue their livelihood.  The current business model on a dairy farm means that the more milk you produce, the more dollars you lose.  The business model is broken and the Secretary committed to both helping distribute timely aid in the short term and enhancing the way the industry does business in the long term.”

The economic downturn has caused a worldwide decline in demand for milk and other dairy products, leading to a glut on the market. As a result, the price received by many mid and small-sized dairy farmers has been less than the cost to produce dairy products, causing many farms to shut down and leaving many others in jeopardy of following suit.

“We can’t allow our local dairy farms to shut down – not only are they a major economic engine for our region, they are woven into the very fabric of many small communities. We need to provide short-term assistance to help them get back on their feet, and then fix the bigger problems that lead to the market becoming so horribly unbalanced.”

Earlier this week, negotiations between the House and Senate produced a $350 million dollar emergency aid package that will be added to the Department of Agriculture Appropriations Bill. $60 million of that aid will be used to purchase cheese and other dairy products and distribute them to food banks and other nutrition programs for the needy. The remaining $290 million will be used to help offset the losses felt by economically stressed dairy producers.

Congress will consider the Department of Agriculture Appropriations bill in the next couple of weeks.

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