The national and state financial crisis is affecting every American in a variety of ways, and vital industries to our economy also are feeling the pinch. I recently attended the Central New York Farm Progress Show, and while I was there, I was able to talk to local dairy farmers and hear first-hand the struggles they face on a daily basis. My staff and I have attended dairy rallies and our office takes calls almost daily detailing the many problems our dairy farmers face. These experiences serve to solidify my dedication to bringing aid to New York’s dairy farm industry.
New York’s economy depends on its local dairy farmers and, unfortunately, this industry is facing what many industry experts are characterizing as the toughest economic conditions in recent memory. Unless something is done to aid our dairy farmers, we will see the backbone of our state’s economy go out of business.
In June, the average price that New York family dairy farmers received for their milk was approximately $11.50 per hundredweight. This price represented a 40-cent decrease from May and, worse still, a $7.40 drop-off from June 2008. Such a steep decline translates into family dairy farmers being paid prices dramatically below what it costs them to produce their milk, regardless of operation size. Keep in mind that family farms also bear significant and ever-increasing costs for labor, energy, feed, fertilizer and transportation costs.
As if this isn’t bad enough, some economists are predicting fluid milk prices may not increase for another year, which means that our dairy farmers have a long road ahead of them. A recent Cornell University study revealed that in order for New York’s dairy farmers to meet their average costs of production, they would need to receive $17 per hundredweight for their milk. That is almost six dollars more than what they are currently receiving.
Immediate action needs to be taken in order to ensure that our dairy farmers do not go out of business. I am working with my colleagues in the Assembly Minority Conference to convince the governor to earmark and expedite distribution of $75 million of the $24.6 billion in funding allocated to New York state under the American Recovery and Reinvestment Act of 2009, which was enacted back in February. We also would like to see another $75 million in New York’s multi-billion share of federal stimulus funding be set aside for the 2010 growing season in the possibility that family dairy farmers face similarly tough economic times next year.
Aiding dairy farmers not only will help our economy, but it will ensure that we as New Yorkers are receiving the freshest dairy products. If we begin importing dairy products from other states, how fresh will these products be? Not as fresh as if they were produced in our own back yard. When you go to the grocery store, I encourage you look for and buy products that were produced in New York so that you can do your part to help keep local dairy farms afloat.
As always, if you have questions or comments about this or any other state issue, please contact me at either my Johnstown office at (518) 762-6486 or Herkimer office at (315) 866-1632.