For Release: IMMEDIATELY, August 30, 2009
Contact: (607) 648-6080 [Assemblyman Cliff Crouch]
Contact: (518) 542-2413 [Leader Brian Kolb]
Crouch, Kolb Call On Governor Paterson To Release $150 Million To Help New York's Struggling Family Dairy Farmers
Crouch announces he will sponsor regional meetings to raise public awareness of the economic challenges facing New York's family dairy farmers

In a letter sent to Governor David Paterson earlier this week, Assemblyman Clifford W. Crouch (R,I-Guilford) and Assembly Minority Leader Brian M. Kolb (R,I,C-Canandaigua) urged the release of $150 million in federal stimulus funds to help New York's struggling family dairy farmers facing what some have characterized as the most difficult economic conditions in the history of the state's dairy industry. Crouch and Kolb's effort reflects the Assembly Minority Conference's continued strong support for family dairy farmers and coincides with the kick-off of the State Fair, as well as a bi-partisan Congressional field hearing recently held on the financial challenges facing New York's dairy industry.

"Leader Kolb and I wrote to Governor Paterson requesting the release of $150 million in funding, over a two-year period, for a dairy assistance program that will counter the volatile milk market and help our struggling family dairy farmers," said Crouch, Ranking Minority Member on the Assembly's Agriculture Committee. "With this assistance, family dairy farmers will be able to adjust accordingly. It could make all the difference to their survival during these difficult economic times."

In their letter to the Governor, Crouch and Kolb noted that under the new assistance program, $75 million of the $24.6 billion in funding allocated to New York State under the American Recovery and Reinvestment Act of 2009 will be distributed to struggling family dairy farmers. In addition, another $75 million in funding will be set aside for the 2010 growing season in the likelihood that the dairy industry does not turn around this year.

"There is no questioning the fact that New York's dairy farmers and dairy producers are the backbone of our economy. Likewise, there is no disputing that many are hurting badly from the recession. That's why Assemblyman Crouch and I have written to Governor Paterson asking that he fast track some of New York's federal stimulus funding to provide immediate assistance for family dairy farmers and dairy producers who are facing a fiscal crisis," Kolb said.

The average price that dairy farmers received for their milk in June was $11.50 per hundredweight (cwt.) which was a 40 cents/cwt. slide from May and a $7.40/cwt. decrease from June of last year. As a result, dairy producers are being paid prices that are catastrophically below the price of production for their milk, regardless of the size of their operation, and economists predict that fluid milk prices may not increase for another year.

"This will be the single most definitive action taken by government that would have the added benefit of a ripple effect throughout our upstate economies," stated Crouch. "To minimize any delay in getting the assistance to producers, the state could use the framework that was established in 2006 with the successful Dairy Assistance Program, which utilized a milk production driven formula with a maximum cap per farm."

In addition to announcing the request for dairy assistance money, Crouch also announced that he will be hosting four regional meetings throughout Upstate New York to hear feedback from farmers about the program. The meetings, yet to be scheduled, will be held in Western New York, the Southern Tier, the Capital Region and the North Country. Details will be announced at a future date.

"Assemblyman Crouch is a recognized leader when it comes to standing up and speaking out for the needs of our state's family dairy farmers. His hosting of regional forums on the plight of family dairy farmers caused by the economic downturn will increase public awareness of this situation and spur policy makers to work together to find real solutions to strengthen New York's dairy sector and avoid an economic catastrophe," Kolb stated.

"These meetings will be a great way to hear feedback from New York's farmers. No one has given farmers the proper courtesy and attention during this recession, even though farmers have taken the hardest hit," said Crouch. "This is an opportunity to publicly hear those concerns and do something about them."

EDITOR'S NOTE: Below this news release is a copy of the correspondence that Assemblyman Crouch and Leader Kolb sent to Governor Paterson earlier this week.



The State Assembly of New York Albany

August 26, 2009

Honorable David A. Paterson
Governor
State of New York
State Capitol, Executive Chamber
Albany, NY 12224

Dear Governor Paterson:

As you know, New York State's family dairy farms and dairy producers are currently facing what can only be characterized as the most difficult economic conditions in the modern history of the State's dairy industry. To call it a crisis would not accurately frame the financial devastation that looms on the horizon for our struggling family dairy farmers and the State's agricultural industry, as a whole.

The average price that dairy farmers received for their milk in June was $11.50 per hundredweight (cwt.) which was a 40 cents/cwt. slide from May and a $7.40/cwt. decrease from June of last year. As a result, dairy producers are being paid prices that are catastrophically below the price of production for their milk, regardless of the size of their operation, and economists predict that fluid milk prices may not increase for another year. A recent study conducted by Cornell University revealed that for dairy farmers in New York to just meet the average cost of production, they would need to receive $17/cwt. for their milk.

As Assembly Minority Leader and Ranking Minority Member of the Assembly's Agriculture Committee, we are keenly aware of what is now a daily struggle for financial survival of our farm families. That is why it is imperative that the State take immediate action to provide a lifeline to our family dairy farmers.

Therefore, we respectfully request that you earmark and facilitate the distribution of $75 million of the $24.6 billion in funding allocated to New York State under the American Recovery and Reinvestment Act of 2009, to assist our dairy farmers. In addition, we would ask that another $75 million in funding be set aside for the 2010 growing season in the likelihood that the dairy industry does not turn around this year. To minimize any delay in getting the assistance to producers, the State could use the framework that was established in 2006 with the successful Dairy Assistance Program, which utilized a milk production driven formula with a maximum cap per farm.

Release of such funding by the State, at this point in time, would be the single most definitive action taken by government (state or federal) that would have the added benefit of a ripple effect throughout our upstate economies. In addition, the assistance would also be in line with the purposes of such funds, which include efforts to stabilize state economies and create or maintain jobs.

We thank you in advance for your consideration and look forward to your timely reply. As always, if you would like to discuss our request in greater detail, please do not hesitate to contact us.

Sincerely,
Kold signature
Brian M. Kolb.
Assembly Minority Leader
Crouch signature
Clifford W. Crouch
Ranking Minority Member, Assembly Agriculture Committee

CC: Assembly Agriculture Committee Chairman Bill Magee; Senate Agriculture Committee Chairman Darrel Aubertine; Senate Agriculture Committee Ranking Member Catharine Young

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