Schumer says ‘dairy cliff’ avoided after fed program extended

Press Release, U.S. Senate Majority Leader Charles Schumer

Photo from Schumer’s Office: Sen. Chuck Schumer speaks in June at Har-Go Dairy Farms in Pavilion.

U.S. Senate Majority Leader Charles E. Schumer today revealed that he has secured an extension for the vital Dairy Margin Coverage (DMC) Program dairy farmers rely on, that was set to expire this year, and which could’ve left farmers facing a “dairy cliff,’ cutting off payments to farmers and harming consumers by raising the price of milk.

Schumer secured the extension of the Farm Bill in the Continuing Resolution budget deal which President Biden signed today.

“Our dairy farmers are the beating heart of Upstate, and when they came to me worried that this year we could be going over the ‘dairy cliff,’ I immediately started ringing the cowbell and promised I would churn up support to ensure these payments wouldn’t lapse,” Schumer said. “I helped enact the Dairy Margin Coverage Program in the 2018 Farm Bill, and I am proud to have secured this vital year-long extension while we work to develop a bipartisan Farm Bill in the next year.”

Schumer explained the “dairy cliff” refers to the expiration of the Dairy Margin Coverage (DMC) program, a risk management tool that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.

The dairy industry would be the first impacted, as dairy farmers would lose out on monthly payments through the DMC, whereas farmers participating in other support programs are paid just once per year around harvest time. If we went “over the dairy cliff” that would have meant an end to monthly price support payments to dairy farmers who participate in the Dairy Margin Coverage program, supply chain disruptions causing increased milk prices, and potentially billions in wasted government spending as the federal government would be forced to make milk purchases at a highly inflated price.

Schumer fought to include a one-year Farm Bill extension in the Continuing Resolution budget deal and ensure dairy farmers were protected from going over the cliff at the end of the year. The extension keeps the vital Dairy Margin Coverage Program intact for another year to protect NY’s critical dairy industry while also giving members of Congress extra time to continue to work through the negotiations for the full Farm Bill.

The dairy industry is one of New York’s largest contributor to the agricultural economy. According to the New York State Department of Agriculture and Markets Dairy statistics, there are approximately 3,200 dairy farms in New York that produce over 15 billion pounds of milk annually, making New York the nation’s fifth largest dairy state.