Cheese Bailout

Impact of Government Buying $20 Million of Cheese. John Newton, who is an Agricultural and Applied Economics Association member and works for the American Farm Bureau Federation Expert Says The Move Will Benefit Farmers and Families.

 

In a move United States Secretary of Agriculture Tom Vilsack calls a "robust, comprehensive safety net," the U.S. Depart of Agriculture will purchase nearly 11 million pounds of cheese. That cheese, valued at $20 million, is part of a nationwide cheese surplus which hasn't been this high in 30 years. While the cheese will go to places like local food banks through USDA nutrition assistance programs, the reduction in surplus will help struggling dairy farmers across the country.

       

The move was made after a request from the American Farm Bureau Federation (AFBF) and the National Milk Producers Foundation (NMPF). John Newton, who is an AAEA member and works for the American Farm Bureau Federation, says the USDA's action will "help alleviate the tough realities of the market and keep family farmers in business at a time when too many are leaving." In 2016 milk prices fell to their lowest levels since 2009. The USDA's actions to purchase cheese for food donation programs helps farmers and makes nutritious dairy products more available to needy families.