Proposed Amendment to Ag Bill Sparks Industry Debate

Posted by Brian Gould Fri, 18 Sep 2009 14:47:00 GMT

Congress returned from its August recess this week to a slew of unresolved items on its agenda including a controversial amendment to the fiscal year 2010 agriculture appropriations bill. The bill currently is in conference committee. The Senate-passed amendment, offered by Sen. Bernie Sanders, I-Vt., appropriates $350 million to USDA with the intent of assisting dairy producers. According to Sanders, the extra $350 million would provide farmers on average an estimated $1.50 extra per hundredweight. USDA in late July announced that through October, the support price for Cheddar blocks would increase from $1.13 per pound to $1.31 per pound; Cheddar barrels from $1.10 to $1.28 per pound; and nonfat dry milk (NDM) from $.0.80 to $0.92 per pound. Cash cheese prices on the Chicago Mercantile Exchange have hovered near government support levels over the past several weeks. According to Sanders, an increase in the Farm Service Agency budget to more than $1.6 billion would allow USDA to raise the support price for Cheddar blocks from $1.31 to $1.40; barrels from $1.28 to $1.37; and NDM from $.92 to $.97. For the full story click here.