USA: Shapiro's Subsidy Proposal Aims to Stabilize Pennsylvania Dairy Farms
Source: The DairyNews
As part of an initiative to strengthen Pennsylvania's agriculture through state funding, Democratic Governor Josh Shapiro has proposed a multi-million dollar plan to help local dairy farmers access a federal program. The proposed budget includes $5.6 million to subsidize the cost for farmers to enroll in the Dairy Margin Coverage Protection Program, which provides direct payments to farmers to manage the unpredictable costs of milk and feed.
Jayne Sebright, executive director of Pennsylvania’s Center for Dairy Excellence, highlighted the significant capital needed for dairy farming and the unpredictable monthly market prices that make profitability challenging. The federal program, established by the 2018 Farm Bill, acts like insurance, paying farmers when the cost margin between milk prices and feed falls below a set threshold.
However, participation costs deter many fr om signing up. With Pennsylvania hosting 4,940 dairy farms, only 1,778 are currently enrolled in the program, despite it disbursing $102 million in the state last year alone.
In response, state representatives are crafting legislation inspired by Minnesota’s successful Dairy Assistance, Investment, Relief Initiative, which has significantly increased farmer participation and federal payouts since its 2019 inception.
While the proposal has garnered bipartisan support for its focus on agriculture, it faces challenges in the legislature wh ere concerns about fiscal responsibility loom large. Nonetheless, proponents like Sen. Elder Vogel support the investment as a means to stabilize an industry critical to Pennsylvania’s economy.
However, participation costs deter many fr om signing up. With Pennsylvania hosting 4,940 dairy farms, only 1,778 are currently enrolled in the program, despite it disbursing $102 million in the state last year alone.
In response, state representatives are crafting legislation inspired by Minnesota’s successful Dairy Assistance, Investment, Relief Initiative, which has significantly increased farmer participation and federal payouts since its 2019 inception.
While the proposal has garnered bipartisan support for its focus on agriculture, it faces challenges in the legislature wh ere concerns about fiscal responsibility loom large. Nonetheless, proponents like Sen. Elder Vogel support the investment as a means to stabilize an industry critical to Pennsylvania’s economy.
