The Dairy Industry

Declining farm numbers has long been a characteristic of the Massachusetts dairy industry. Over the years, there have been periods of heightened awareness as low farm milk prices cause farmers to really feel the squeeze between the price they receive and the prices they pay for inputs. Occasional non-federal programs have tried to support the dairy industry in the Northeast. The last of these, the Northeast Interstate Dairy Compact, created a farm price floor beginning in July 1997. The Compact was politically unpopular and came to an end September 2001. Recently, alarmingly low farm milk prices coupled with high input costs have resulted in Governor Deval Patrick submitting a supplemental spending bill that includes $3.6 million to prop up struggling dairy farms. (For the press release announcing the Governor's bill, go to: http://www.mass.gov/agr/dairy/docs/dairy_pr_final.pdf)

The Governors spending bill was coupled with a declaration of emergency for Massachusetts dairy farmers. In addition to funding relief for dairy farmers, the bill also creates a Dairy Farm Revitalization Task Force charged with the development of proposals for strengthening the Massachusetts dairy industry.¹ The Governor’s decision followed four months of hearings, testimony, comments and analyses. The $3.6 million in relief is based on the difference between the farm price for milk and the costs of production; funds were distributed based on milk production statistics for April through December of 2006.

"The Commonwealth's dairy farmers suffered tremendous hardship last year," said Acting Commissioner Soares. "Milk prices are now rising, but not enough to stabilize their financial condition. If we are to maintain dairying as a component of our Commonwealth's agricultural mix, we must take immediate action to provide relief to farmers, then set our sights on long-term solutions."¹

¹“Dairy Relief Press Release.” Executive Office of Energy and Environmental Affairs, Boston , MA . May 11, 2007 . (http://www.mass.gov/agr/dairy/docs/dairy_pr_final.pdf)