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Rep. Costa Announces Applauds Secretary Vilsack's Efforts to Ease Dairy Crisis

July 31, 2009

WASHINGTON,DC- Today,Congressman Jim Costa (D-Fresno) thanked USDA Secretary Tom Vilsack's for hisannouncement to increase dairy price support prices, which will provide somerelief to dairy farmers as they continue to suffer through this period ofhistorically low milk prices. Vilsack announced that USDA will increasethe amount paid for dairy products through the Dairy Product Price SupportProgram.

"OurValley's dairy farmers have been struggling to stay in business, and I havebeen urging Secretary Vilsack to use all of his authority to implement programsto ease this crisis," Costa said. "Increasing the amount paid for dairyproducts, along with the implementation of the Dairy Export Incentive Programback in May, are part of the efforts that can help our dairy farmers throughthis rough time. I want to thank Secretary Vilsack for his recognition ofthe crisis and his actions to help alleviate the suffering."

TheDairy Price Support Program was authorized in the 2008 Farm Bill and requiresUSDA to purchase products at minimum prices. Today's increase will raisethe price paid for nonfat dry milk from $0.80 per pound to $0.92 per pound, theprice paid for cheddar blocks from $1.13 per pound to $1.31 per pound, and theprice of cheddar barrels from $1.10 per pound to $1.28 per pound. This increasein the support price will have an immediate effect upon dairy farmers' bottomline.

Costahas been working with Secretary Vilsack and his colleagues on the HouseAgriculture Committee to find solutions to this crisis. In May, followingmonths of work by Costa and Congressman Dennis Cardoza (D-Atwater), theUSDA announced they would implement the Dairy Export Incentive Program (DEIP)to help U.S. dairy exporters compete with prevailing world prices.