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September 24, 2009 - Plan Proposed to Help U.S. Dairy, Pork Producers

September 24, 2009 - Plan Proposed to Help U.S. Dairy, Pork Producers

BISMARCK, ND - The nation’s top state agriculture officials have offered the federal government a new proposal, called “Meat the Need,” to help the nation’s embattled dairy and pork farmers.

“The National Association of State Departments of Agriculture (NASDA) has put forward a plan to take extra dairy and pork supplies off the market, bringing up prices paid to producers,” said North Dakota Agriculture Commissioner Doug Goehring. “These commodities will then be available through a supplemental food assistance program to people who cannot afford it.”

Goehring, who returned to North Dakota late Monday, from NASDA’s annual meeting in Montgomery, AL, said Meat the Need calls for the federal government to purchase cheese and other dairy products in up to three installments of 75 million pounds each over 120 days.

“If the target price of $16 per hundredweight of milk – the cost of production – is reached before the second or third installment, the purchases would stop,” Goehring said. “Likewise, the government would purchase up to three installments of 100 million pounds of pork products over 180 days until a target price of 49 cents per pound is reached.” The plan also includes of a one-time purchase of 100 million pounds of turkey.

Goehring said the purchased dairy and pork products would be distributed to food banks, school lunch programs and a new SNAP-PLUS program, as well as into foreign military food assistance.

“SNAP-PLUS would allow USDA to increase allocations to the Supplemental Nutrition Assistance Program (SNAP) and require SNAP beneficiaries to spend the new allocations on meat and possibly dairy products only,” Goehring said. “These products would be available through commercial grocers. Participants would be given separate electronic benefits transfer (EBT) cards to purchase the products.”

Goehring said major action is needed quickly.

“Dairy farmers across the country are suffering deeply with many facing bankruptcy and foreclosure at an alarming rate,” he said. “USDA has been buying pork, but not nearly enough to do anything about the prices farmers receive. Meat the Need provides the impact the dairy and pork industries need; it is fiscally sound and is flexible enough to respond to changing market conditions. ”

NASDA is comprised of the commissioners, secretaries and directors of agriculture from the 50 states.

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November 21, 2009
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