Walz Urges Swift Action to Assist Dairy Producers
Says action is critically important to head off looming crisis in dairy industry to save good-paying jobs in rural America
For Immediate Release
February 10, 2009
Contact: Meredith Salsbery
507-388-2149
WASHINGTON D.C. — On Monday, Congressman Walz wrote to Agriculture Secretary Tom Vilsack, urging him to take swift action to assist dairy producers throughout the country who are experiencing serious economic difficulty due to high production costs and low milk prices.
"I have heard from dairy producers across Minnesota who are very concerned about the future of their industry if swift action is not taken,” said Walz. “I wrote Secretary Vilsack yesterday to encourage him to use funds he has available to purchase surplus milk and processed milk products and help shore up collapsing dairy prices.”
Walz successfully pushed for a similar action by USDA last year to address a drop in pork prices that threatened the livelihood of thousands of southern Minnesota’s farm and ranch families. He said that sensible use of USDA’s so-called Section 32 funds—funds that are available at the discretion of the Secretary of Agriculture to purchase surplus commodities—can increase demand for dairy products and help producers around the country who are facing a crisis.
“During this time of economic uncertainty, it is important that we act quickly to provide assistance and save good paying jobs in rural America,” Walz.
On an annual basis, Minnesota dairy producers contribute more than $1.2 billion to Minnesota’s economy and the total economic impact of Minnesota’s dairy production is an estimated $3.1 billion. Minnesota’s dairy industry generates more than 27,000 jobs, including direct employment of more than 6,000 workers.
In January 2009, dairy producers experienced a significant drop in milk prices that is far below their breakeven costs. Prices are expected to fall even further throughout the month of February.
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