The U.S. Department of Agriculture announced a $148 million investment on February 19th aimed at supporting dairy farmers struggling with depressed milk prices while increasing consumption of dairy products nationwide. The federal purchase program represents the most significant butter buying initiative in half a decade and directly aligns with advocacy efforts launched by the National Milk Producers Federation last November.
“Dairy farmers have shared in the struggles faced throughout the agricultural economy, and these purchases will provide important relief to producers who will benefit from the additional demand, helping them provide nutritious dairy products to Americans and the world,” stated Gregg Doud, President and CEO of the National Milk Producers Federation.
The federal purchasing initiative breaks down as follows:
• Butter purchases totaling $75 million
• Cheddar cheese acquisitions worth $32.5 million
• Fresh fluid milk purchases of $20.5 million
• Swiss cheese buying program valued at $10 million
• Ultra-High Temperature shelf-stable milk purchases of $10 million
This investment directly mirrors the funding amount the National Milk Producers Federation requested in correspondence sent to agriculture officials last November, which led to ongoing discussions and formal communications with the USDA. The dairy support package compares well with other recent federal agricultural assistance programs, including $80 million allocated for specialty crops and $100 million designated for seafood industries.
These dairy acquisitions fall under USDA Section 32 authority, established through the Agricultural Adjustment Act of 1935, which empowers the department to purchase excess domestically-grown agricultural commodities to stabilize farm markets and supply food for federal nutrition programs.
Through this program, the USDA’s Agricultural Marketing Service alerts industry participants and stakeholders about new purchasing opportunities by releasing Purchase Program Announcements year-round. Following this week’s announcement, the USDA will accept bids from certified vendors and distribute purchase contracts accordingly.
