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."