The Madison-based FarmFirst Dairy Cooperative is making a
plea to top USDA officials, asking them increase the mitigation payments to
U.S. dairy farmers to accurately reflect the cost of the retaliatory tariffs
placed on American dairy products. In a letter to U.S. Agriculture Secretary Sonny
Perdue, the company requested that any additional payments be calculated based
on a formula that more closely represents the financial harm that has been
placed on dairy farmers.
"We appreciate your effort to implement a trade
mitigation package to support dairy farmers recognizing the harmful effects
these retaliatory tariffs have on farmers," said FarmFirst Board President
John Rettler in the letter. "However, that mitigation package calculates
only $127 million in payments to dairy farmers, or $0.12/cwt on one-half of
annual production."
The letter further stated that USDA's World Agricultural
Supply and Demand Estimates puts the estimated loss to dairy farmers at around
$1.5 billion.
"Your dedication to improve market access for America's
farmers is consistent with our desire to derive farm income from the domestic
and global marketplace," the letter said. "Dairy farmers have endured
exceptionally low milk prices over the last several years. Specifically, 18
percent lower from 2015 to 2017 compared to the average price farmers received
from 2011 to 2014. Farmers were managing through this low point and believed
the markets would come around."
Rettler says the opportunity for dairy farmers to recover
from these low prices was spoiled earlier this spring when the dairy markets
reacted after these retaliatory tariffs were imposed.