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U.S. Rep. Paul Tonko (D-Amsterdam) sent a letter Monday to the Secretary of the U.S. Department of Agriculture calling for action to protect dairy farmers, who are facing a crisis that could lead to the loss of farms throughout Upstate New York. Rep. Tonko is joining other members of Congress in calling for the U.S. Department of Agriculture to buy surplus dairy products for use in federal nutrition programs, which could make up for lost demand and stabilize wholesale prices. Rep. Tonko is responding to concerns he heard directly from farmers during meetings in the district last week.
 
The full text of the letter is included following the release.
 
The wholesale price farmers are paid for milk has plummeted because of a worldwide drop in demand due to the slowing economy. At the same time, the farmers' cost to produce milk remains high, thanks to increased costs for energy, fertilizer and grain. The result is that farmers are receiving less for their milk on the wholesale market than the cost of production, leading many to predict that a prolonged recession will put many small and midsized farms out of business. According to the U.S. Department of Agriculture, the wholesale price of milk has dropped by more than half over the past two years.
 
"Allowing this current trend to continue will be disastrous for many local dairy farmers," said Rep. Tonko. "We have to take steps to bolster the market and keep our local farms functioning. Dairy farms form the backbone of communities throughout upstate New York, and while consumers may see lower prices at the store as a good thing, the closure of farms will have catastrophic effects for many local communities. I will continue to look for opportunities to partner with our New York Congressional delegation to ensure that family daily farms will survive our economic downturn."
 
New York State Agriculture Commissioner Patrick Hooker said, “Dairy farmers cannot survive this economy with the prices they are currently receiving.  Therefore, we support the efforts of our Congressional delegation and Governor Paterson who is working closely with them to find ways to address these low milk prices and support our family dairy farmers.”
                                                               

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Full text of letter:
 
 
February 23, 2009

The Honorable Tom Vilsack

Secretary of Agriculture

U.S. Department of Agriculture

Washington, D.C. 20250

Dear Mr. Secretary:

            I write to you concerning a crisis that is destabilizing local dairy farmers in my district.  The dairy industry bares a huge economic impact in New York State.  My district and several others in New York State have local economies that are reliant on the farm economy.  In fact, in the 21st Congressional District of New York alone, there are over 2,327 farms, 34,000 cows and 715,000 thousand pounds of milk production.

            A serious imbalance in the domestic dairy industry presents an imminent threat to the economic stability and welfare of American dairy farmers, especially in Upstate New York.  In spite of industry-led efforts to balance supply, the overall state of the economy has reduced demand for dairy foods, resulting in an estimated 2009 surplus of 6.5 billion pounds.

            It is now predicted by the United States Department of Agriculture that the minimum price per hundredweight will drop to $10.72 this month.  At that price, dairy farmers in New York cannot adequately sustain their operations, even at the best and most efficient farms.  The crisis is compounded due to production costs that by historical standards remain high and an export market that has contracted along with the global economy.  

            In light of disturbing evidence, and consistent with the authority granted the Secretary under law, I respectfully urge you to make generous purchases of dairy products as soon as possible for use in federal nutrition programs.  As we work to address long-term solutions to overproduction, as well as stimulate the economy by retaining agricultural as well as corollary jobs, your quick action to remove surpluses from the market is critical to ease the immediate crisis and continue to provide wholesome and nutritious products for school children, the elderly and others in need.

Thank you for your prompt attention and consideration of this request.

 Sincerely,

 Paul D. Tonko

 Member of Congress