Tuesday, October 06, 2009

Ag. secretary: Dairy industry must restructure

The struggling U.S. dairy industry must be restructured to avoid cycles of boom and bust, Agriculture Secretary Tom Vilsack said Monday, less than a week after Congress announced a $350 million dairy bailout. Dairy farmers benefited in recent years from higher milk prices and growing demand in countries such as China. But demand fell off with the economic downturn, and wholesale milk prices began plummeting last fall. At the same time, feed and other costs remained high. Many farmers now say they can't sell their milk for what it costs to produce. "I think really what will be next in line is a longer term discussion about whether or not we need to make structural changes in the way the dairy industry is currently operated so we no longer have these rather stark contrasts between boom and bust," Vilsack said during a visit to South Dakota. Vilsack said he would like to get federal aid into farmers' hands as soon as possible...read more

If anything needs to be restructured, its USDA.

Vilsack, give me a holler and I will share with you my restructure plan.

Here's a hint: you'll be able to return to Iowa.

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