By Blake Jackson
Governor Shapiro proposes using $5.6 million to connect more Pennsylvania dairy farms to a federal program. This program helps farmers manage risk from fluctuating milk and feed prices.
The dairy industry faces challenges due to high initial costs and unpredictable market prices. The federal Dairy Margin Coverage Program acts like insurance, offering payments when milk prices fall below a certain point relative to feed costs.
Participation is low partly due to upfront costs. Pennsylvania aims to follow Minnesota's model by offering a state subsidy to reduce signup costs for the federal program. This could incentivize more farmers, especially smaller ones, to participate.
While there is bipartisan support for agriculture investment, the overall budget faces opposition due to concerns about spending. Even within this, there are disagreements on how to allocate the $5.6 million. Governor Shapiro also proposes creating a dedicated staff position to advocate for the dairy industry.
This plan could provide much-needed stability for Pennsylvania's dairy farmers, but it is unknown if the budget will be approved.
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Categories: Pennsylvania, Government & Policy