Standing at Casler Family Farm in Little Falls, U.S. Senate Majority Leader Charles E. Schumer today revealed how the vital Dairy Margin Coverage Program (DMC) Mohawk Valley dairy farmers rely on is in limbo as the program is set to expire, which could have farmers facing a “dairy cliff,’ – an outcome that could double wallop farmers and consumers.
Schumer explained the DMC, which offers monthly price support payments from the feds to dairy farmers, will end this month and if no action is taken would lead to less support for our farmers, severe supply chain disruptions, and an increase in the price of milk. Schumer said it is imperative we protect this program to ensure Upstate New York dairy farmers have the support and safety net they need.
“Dairy is the lifeblood of Herkimer County agriculture, with over 10,000 dairy cows producing over 70% of the county’s agricultural sales dollars. But by the end of this year, many of our Mohawk Valley dairy farms could be looking over a ‘dairy cliff’ that threatens lifeline payments, puts the industry in limbo, and increases the price of milk,” said Senator Schumer. “The Dairy Margin Coverage Program is essential to support our farmers, like Casler Family Farm, and to keep the best quality milk made from New York farms flowing to families across America. I helped enact the Dairy Margin Coverage Program in the 2018 Farm Bill and it is imperative we extend it before it expires at the end of this year. I will not stop fighting to ensure this critical program and safety net for our Upstate dairy farmers is protected.”
“Herkimer County is at the heart of Upstate New York’s dairy industry, and the looming “Dairy Cliff” threatens an essential safety net for our dairy farmers. Going over the Dairy Cliff would add more risk and uncertainty into dairy markets, disrupt supply chains, increase milk prices at grocery stores, and more. With most of Herkimer County’s agricultural sales driven by dairy farms, renewal of the Dairy Margin Coverage Program is absolutely critical to maintaining the stable dairy markets that the countless rural, farm-driven communities across our region depend on,” said Daniel Casler, Little Falls Town Supervisor and Casler Family Farm Owner. “On behalf of dairy farmers in Herkimer County and across New York State, I would like to extend our collective appreciation to Senator Schumer for fighting to reauthorize the Dairy Margin Coverage program and protect our state’s dairy farms. I’ve heard it said before that the greatest function of Government is to do for the tax-paying citizenry what they cannot ordinarily do for themselves. I commend Senator Schumer for continuing to carry the torch in pursuit of that function – and for doing so here at my farm in support of dairy farmers like me.”
“The dairy industry is a vital part of the economy here in New York State. Dairy farms provide jobs and revenue within our rural communities, which helps support our schools and other businesses throughout the state. DMC has been a critical program over the last decade to sustain dairy producers through times of low milk prices and high feed costs,” said Jim Barber, USDA FSA New York State Executive Director. “I want to sincerely thank Senator Schumer for his long-standing support of the DMC program and his push to get it extended for 2024 and, hopefully, again for 2025.”
Schumer explained the ‘dairy cliff’ refers to the expiration of the Dairy Margin Coverage (DMC) program, a risk management tool that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. If Congress doesn’t pass a farm bill extension and the DMC is allowed to lapse, the dairy industry would be the first impacted, as dairy farmers would lose out on monthly payments through the DMC, whereas farmers participating in other support programs are paid just once per year around harvest time. If we were to “go over the dairy cliff,” that would mean:
- An end to monthly price support payments to dairy farmers who participate in the Dairy Margin Coverage program
- Massive supply chain disruptions that could reduce access to fluid milk, increase the price of dairy products, and have lasting impacts on farmers, families, and food banks
- Billions of dollars in avoidable federal government spending
Herkimer County is home to 85 dairy farms and 10,400 dairy cows, putting it in the top 10% of dairy counties nationwide. According to the New York State Agriculture and Markets 2023 New York State Dairy Statistics Annual Summary, Herkimer County dairies produce over $65,569,000 in sales annually, representing over 70% of the county’s sales in agricultural products. The county’s dairy farms market 279,000 pounds of milk per farm and over 23,721,000 total pounds of milk annually. Herkimer County ranks as the 22nd top dairy-producing county in New York, according to the U.S. Department of Agriculture’s most recent Census of Agriculture. Similarly, Oneida County has an estimated 138 dairy farms and is ranked as the 14th dairy-producing county in NY.
Casler Family Farm in Little Falls is a multi-generational dairy farm with local roots dating back over 300 years, owned and operated by 10th and 11th generation Herkimer County dairy farmers Daniel and Jerimiah Casler. The 1000-acre farm is home to ~110 grass-fed, milking cows that produce ~120,000 gallons of fresh, local milk annually. In 2000, the Casler Family Farm was recognized for its bicentennial anniversary by the New York State Agriculture Society.
According to Daniel Casler, Casler Family Farm has long been an active user and beneficiary of the DMC, its predecessor MILC, and other USDA farm support programs from EQIP to ARC, PLC, and more. In the last 3-4 years, the Casler’s dairy farm has directly benefited to the tune of ~$20,000 from the DMC alone. Casler Family Farm is a member of the Organic Valley Cooperative and has been certified organic since 2005. Daniel Casler is a member of the National Farmers Organization Board of Directors and a founding member of the Institute for Rural America.
Failing to extend this provision and going over the dairy cliff would not only negatively impact payments to dairy farmers, but it would also cause massive market disruption for larger factories as well as smaller dairy operations like Casler Family Farm, major price increases for consumers, and avoidable increases in government spending. Schumer explained that the only way to avoid going over the dairy cliff is for Congress to come together in a bipartisan fashion, as they have always done, to reauthorize these programs in the next Farm Bill. The senator explained that the Farm Bill is usually enacted every five to seven years. Although the current Farm Bill, which was passed in 2018, expired on September 30, 2023, Congress passed a one-year extension of the 2018 farm bill last September and has until December 31, 2024, to pass another extension before potentially detrimental impacts to farmers begin, including going over the dairy cliff.
The dairy industry would begin to see severe impacts starting January 1, 2025. If no farm bill extension is passed and the DMC is allowed to lapse, the country would be forced to revert back to 1940’s agriculture policy. Farmers would lose the support and protection offered by the DMC, and the law would require the federal government to stabilize prices by taking milk off the market through milk purchases. The government would be required to purchase milk at a price that is more than double the current market price, which could cost the federal government billions of dollars in otherwise avoidable spending and could result in price increases being passed onto consumers, which would have devastating impacts on consumers and nutrition programs that offer milk and dairy products to people in need. The availability of fluid milk and dairy products could also be impacted; consumers could see fewer options in stores, and food manufacturers could see less dairy product availability for products like baby formula, protein powder, and other products that use dairy ingredients. The widespread supply chain and market disruption caused by the DMC’s expiration would have devastating impacts on the dairy industry, farmers, and consumers across the country.
The dairy industry is one of New York’s largest contributors to the agricultural economy. According to the New York State Department of Agriculture and Markets Dairy statistics, there are nearly 3,000 dairy farms in New York that produce over 16.1 billion pounds of milk annually, making New York the nation’s fifth largest dairy state.
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