Senator Chuck Schumer has issued a warning about potential significant supply chain disruptions and a subsequent spike in milk prices, referring to the impending ‘dairy cliff.’
The issue stems from the uncertainty surrounding the renewal of the Farm Bill, crucial for states like New York with prominent dairy farming industries.
Schumer underscored the difficulties of passing the Farm Bill amidst current challenges in Washington, and the potential impacts on dairy farmers who rely heavily on export markets.
A key component of the Farm Bill is the Dairy Margin Coverage Program (DMC), established in 2018, which offers monthly payments to dairy farmers.
Schumer warned of the severe impacts on the dairy industry if the DMC is dropped from the Farm Bill.
The expiration of the 2018 Farm Bill is set for September 30, and without renewal, the country could have to revert to agriculture policies dating back to 1940. The consequences, he cautioned, could start to be felt as early as the beginning of 2024.
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