Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON, DC – Congressman Cardoza announced today that the U.S. Department of Agriculture is taking immediate action to support struggling dairy farmers in the Valley who have been hard hit by increased production costs. Specifically, the amounts paid for nonfat dry milk and cheddar blocks and barrels through the Dairy Product Price Support Program (DPPSP) are being increased.

Today’s announcement comes on the heels of Congressman Cardoza’s request that USDA increase the price support payments and take more action to help struggling dairies. In a letter to Agriculture Secretary Tom Vilsack on July 13, Cardoza joined with several other members of Congress to request that the price paid through the DPPSP be increased (attached). On July 29, Congressman Cardoza also raised the issue in a letter to Peter Orszag, the Director of the Office of Management and Budget (attached).

“For months, I have expressed to Secretary Vilsack the devastation facing our dairy producers in the Valley and I appreciate his assistance in addressing the serious challenges we are facing,” said Congressman Cardoza. “However, while this is a positive step forward, dairies in my district need much more help if they are going to survive this crisis. I will continue doing everything in my power to ensure the Valley maintains a strong dairy industry for many years to come.”
 
The increase announced today will raise the price paid for nonfat dry milk from $0.80 per pound to $0.92 per pound, the price paid for cheddar blocks from $1.13 per pound to $1.31 per pound, and the price of cheddar barrels from $1.10 per pound to $1.28 per pound. The increase will result in the government purchase of an additional 150 million pounds of non-fat dry milk (NDM) and an additional 75 million pounds of cheese. Temporarily raising the price of these dairy products increases the price that dairy farmers receive for their milk. The increase in the support price will have an immediate effect upon dairy farmers’ bottom line. The USDA estimates that these price changes will increase all milk prices received by dairy producers by $1 and will increase dairy farmers’ revenue by $243 million throughout the United States.

Today’s announcement is in addition to a recent increase in the Dairy Export Incentive Program aimed at helping dairy exports, also the result of Congressman Cardoza’s efforts. In the past year, dairy producers in the San Joaquin Valley specifically requested that the USDA activate the far-reaching DEIP, which had not been in effect since 2004 because market conditions were relatively strong until last year. DEIP helps U.S. dairy exporters compete with prevailing world prices. It also encourages the development of international export markets in areas where U.S. dairy products cannot compete because of subsidized dairy products from other countries.

Congressman Cardoza has been fighting for dairy producers since the current crisis began. He first raised concerns over dairy prices with Agriculture Secretary Vilsack in February. He continued to press for relief with subsequent letters and repeated phone calls to the USDA, Secretary of State Hillary Rodham Clinton, United States Trade Ambassador Ron Kirk, and Director of the Office of Management and Budget Peter Orszag.