Representative Angie Craig, Senators Klobuchar and Smith Applaud Biden Administration’s Support for Minnesota Dairy Producers
WASHINGTON, DC – Today, U.S. Representative Angie Craig and U.S. Senators Amy Klobuchar and Tina Smith issued statements applauding the Biden Administration's approval of approximately $580 million in Supplemental Dairy Margin Coverage payments, which will provide enhanced risk management to the small and medium-sized dairy farms still recovering from the COVID-19 public health and economic crisis. Earlier this year, Craig, Klobuchar and Smith
"Minnesota's hardworking dairy farmers – who are a critical part of our state's agricultural economy – deserve fair and equal access to the federal funds necessary to emerge through this unprecedented and ongoing crisis," said Representative Angie Craig. "We are encouraged by the Biden Administration's announcement, which heeds our call to extend financial relief to the small and medium-sized dairy producers who are in greatest need of support at this time."
"Minnesota's dairy farmers are key to keeping our rural areas strong and protecting our nation's food supply," said Senator Klobuchar. "I fought for this federal funding because it is crucial that they are able to recover from the pandemic and continue contributing to communities across the state. I'll keep working to ensure resources are distributed in a timely manner."
"Minnesota's dairy farmers play a vital economic role in Minnesota and across the country," said Senator Smith. "Even before they were hit hard by the coronavirus pandemic, dairy farmers faced extremely tight margins, market uncertainty, and unfair trade practices. This funding will help get them back on their feet as we emerge from this pandemic. I'll continue fighting for relief for Minnesota agriculture."
With strong support from Representative Craig and Senators Klobuchar and Smith, Congress enacted the Supplemental Dairy Margin Coverage program in the Consolidated Appropriations Act of 2021 to build on the Dairy Margin Coverage program enacted in the 2018 Farm Bill. The Supplemental DMC program will make additional payments to small and medium-sized dairy farms whose DMC production history is below five million pounds, but whose actual production has modestly increased since 2014. Eligible farmers will be paid on 75 percent of the difference between their 2019 actual milk production and their DMC production history. Producers must be enrolled in the DMC program to receive Supplemental DMC payments for a given year. Supplemental DMC will be retroactive to January 2021.
Craig, Smith and Klobuchar were joined in their praise of the Biden Administration's announcement by Garrett Luthens, a Hutchinson, MN dairy farmer and Chairman of the Minnesota Milk Policy Committee as well as Steve Schlangen, a dairy farmer from Albany, Minnesota who serves as the Chairman of the American Milk Producers, Inc.
"Dairy farmers were affected in many different ways throughout the pandemic," said Garrett Luthens. "Minnesota dairy farmers are thankful for the programs that became available. But those dairy farmers with under 200 cows who added family members or partners since 2014 were left behind. We fought for and thank Congress for finally making this right through the Dairy Margin Coverage Supplemental program. Our beginning and family dairy farms should not be at a disadvantage when it comes to risk management programs."
"The Supplemental Dairy Margin Coverage program will provide enhanced risk management for dairy farm families. This will help those who have modestly grown their herds over the last decade but have been unable to secure coverage on this additional production," said Steve Schlangen. "Minnesota dairy farmers are grateful to Representative Craig and Senators Klobuchar and Smith for their advocacy in Congress and with USDA to bring the Supplemental DMC program to fruition."
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