Feds take steps to drive depressed dairy prices up

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California's struggling dairy farmers will get a modest boost from the Agriculture Department, which announced plans Thursday designed to bolster prices and benefit hungry kids. With dairy prices plummeting, Agriculture Secretary Tom Vilsack said the department will shift 200 million pounds of surplus nonfat dry milk into domestic feeding programs. Reducing the surplus stored in government warehouses is supposed to propel prices upward.

WASHINGTON — California's struggling dairy farmers will get a modest boost from the Agriculture Department, which announced plans Thursday designed to bolster prices and benefit hungry kids.

With dairy prices plummeting, Agriculture Secretary Tom Vilsack said the department will shift 200 million pounds of surplus nonfat dry milk into domestic feeding programs. Reducing the surplus stored in government warehouses is supposed to propel prices upward.

"Providing food to those in need will help many weather these tough economic times," Vilsack said. "At the same time, (this) disposal plan will benefit dairy farmers, who have seen markets disappear."

The department will also be providing an additional 1.5 million pounds of nonfat dry milk for international feeding programs. Taken together, the moves are less than some farmers wanted but apparently enough to provide temporary relief.

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"It will make a difference," said Michael Marsh, chief executive officer of the Modesto-based Western United Dairymen, though "I'm a little concerned that there are still some (aid) components that are missing." In particular, Marsh and San Joaquin Valley lawmakers have been urging the Agriculture Department to provide subsidies through the Dairy Export Incentive Program. Agriculture Department officials said Thursday they were "exploring the possibility" of reviving the program.

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