February 23, 2007

By Kelly Loftus, Agency of Agriculture, Food & Markets

MONTPELIER — Governor Jim Douglas signed into law today a bill to offer financial assistance for dairy farmers facing hardship.

Governor Douglas said the dairy industry is a source of major economic income for the state. Gross sales of cheese, ice cream, yogurt and milk equal $1.2 billion a year. Dairy product manufacturing in Vermont employs over 1700 people with over $70 million in gross wages to Vermonters.

“I’m pleased that the Legislature and I were able to work together to craft a relief package for our farmers that did not require a tax increase on already overburdened taxpayers,” the Governor said. “The vitality of the dairy industry is integral to the vitality of the state and I'm pleased to sign this responsible legislation into law. The compromise we reached illustrates the value of evaluating each proposal through the prism of affordability.”

Vermont dairy farmers are currently battling problems such as unfavorable weather, the high cost of production and fuel and the low price paid for milk. The legislation was adopted to assist Vermont dairy farmers and their industry to help prevent further loss to the industry and its infrastructure which are critical to Vermont’s economy.

The $3 million dollar legislation includes an interim dairy assistance plan where dairy producers will receive a single payment made by the end of March 2007 based on January and February milk production. Farmers who wish to receive this interim assistance must provide the Agency of Agriculture, Food and Markets with verifiable production amounts for January and February by March 6.

“This is important legislation that will assist Vermont’s dairy farmers during a time of need.” Roger Allbee, Secretary of Agriculture commented. “The economic importance of the dairy farmer to Vermont is extremely significant and this is an investment to ensure the continued growth and future of the dairy industry in Vermont,” Allbee said.

Governor Douglas and Secretary Allbee both said federal aid and reform of the antiquated federal dairy pricing system are essential to the long-term success of Vermont's agricultural economy. Governor Douglas is scheduled to address these issues, and others, with U.S. Agriculture Secretary Mike Johanns on Tuesday.

The Vermont Agency of Agriculture is working closely with the Farm Services Agency to make payments to farmers as soon as possible. All farms must fill out a new Authorization for Release of Records and return it to your local Farm Services Agency Office by March 6. This release form is needed to allow for the transfer of records and participation in the state program. If you have questions or need additional information, please contact Diane Bothfeld or Byron Moyer at the Vermont Agency of Agriculture at 828-2430.