Tom Reed

Congressman Tom Reed wants to ensure dairy farmers in Western New York and the U.S. get a “fair shake” following a ruling on a trade dispute between the U.S and Canada.

Reed, in his weekly media call, discussed the Ways and Means Committee hearing with U.S. Trade Representative Katherine Tai and their discussion on holding Canada accountable under the United States–Mexico–Canada Agreement (USMCA)

United States-Mexico-Canada Agreement went into effect in July 2020. It replaced the North America Free Trade Agreement, or NAFTA.

In January, A USMCA panel agreed with the United States that Canada is breaching its USMCA commitments by reserving most of the in-quota quantity in its dairy tariff-rate quotas (TRQs) for the exclusive use of Canadian processors.

Earlier this month, Canada announced changes to the Dairy Tariff Rate Quota that have been regarded by many as inadequate and a continued lack of adherence to the intent and spirit of the USMCA Dairy Provisions.

Reed said this first case of the USMCA sets a precedent for trade agreements, “They’re not just a piece of paper that don’t carry consequences and enforcement mechanisms. What we are looking for is fair, free, open, level playing fields upon which our U.S. interests, such as dairy farmers, such as manufacturers, have an opportunity to access those markets and have a fair shake at growing and developing their resources.”

Reed said the trade agreement is representative of millions of dollars to farmers in regards to new market access.

Dairy farmers

That was the message from Cornell Cooperative Extension Farm Business Management Specialist Katelyn Walley-Stoll while talking about June being celebrated as “Dairy Month” in the United States. Walley-Stoll said the pandemic hit farms really hard with fees tacked onto milk prices as well as low milk prices causing farmers to dump milk, “For farms that were already struggling or having some cash flow issues or maybe the farm owners were getting to retirement age and didn’t necessarily have a new generation coming in, we did see some farms stop producing milk, sell businesses, or switch to producing beef cattle, or something a little less volatile which is unfortunate. But for the majority, dairy farmers are very resilient.”

Walley-Stoll said dairy farms have a important economic impact on our area, “We kind of have this number that for every dollar that a farms brings in $2.29 is generated in the local community. So a single 100 cow dairy farm, for example, which is on the smaller side for our region, could have as much as an over $2 million worth of economic impact.”

There are 150 dairy farms in Chautauqua County with a total of over 680 dairy farms in the Southwest New York region.

At the same time, food banks in New York State are seeing increased demand for services.

Gov. Cuomo said the state is looking for ways to purchase excess milk from farms and then turn it into dairy products that can be distributed to food banks. He said the state is looking for cooperation with Chobani, Cabot Creamery, and Upstate Niagara Cooperative.

The news was well received by the New York State Farm Bureau.

“Governor Cuomo provided some much-needed good news for the state’s farmers and our partners looking to feed fellow New Yorkers in need,” NYFB President David Fisher said. “Our organization has been advocating for food purchase programs at the state and national levels to address the surging demand for food assistance as well as to help alleviate oversupply issues that are burdening our farms because of the loss of markets in the food service industry.”

Fisher also said that more needs to be done to support all New Yorkers.

“No farmer wants to dispose of the food they produce, but few farms can process and package their raw commodities, like milk, into products that can be purchased or donated to those in need,” he explained. “We know out of state products like apples and potatoes are being purchased rather than supporting our farmers here in the state who themselves have been impacted by COVID-19. Today’s announcement will provide an additional pathway to move more nutritious, New York produced food from our farms to the dinner table, which will benefit everyone involved…. The proposal is a win-win and we look forward to continuing our partnership with Feeding New York State, our dairy cooperatives and marketers, and state officials to help feed more New Yorkers who are struggling right now.”

According to the NYFB, last year alone New York’s farmers donated more than seven million pounds of food to regional food banks across the state through the Harvest for All program.

The Margin Protection Program (MPP), which extended it’s deadline to sign up to June 8, is designed to assist dairy farmers by ensuring financial stability during periods of low milk prices – such as the one farmers are currently experiencing.

According to Congressman Tom Reed’s office, dairy farmers can contact their local Farm Service Agency office to learn more about the program or signup.

U.S. Senator Kirsten Gillibrand (D-NY)

WASHINGTON – Senator Kirsten Gillibrand wants the federal government to do more to support dairy farmers across the country, including those in New York, who are struggling with below market milk prices.

On Tuesday, Gillibrand announced that she is pushing the U.S. Department of Agriculture secretary Sonny Perdue to authorize $300 million in emergency relief funding for dairy farmers, including nearly 4,000 in New York State.

Dairy Farmers are currently struggling with historically low milk prices — causing farmers to operate their farms under an increasing amount of debt.

The USDA has the authority to provide direct financial assistance to struggling agricultural industries, and recently provided similar relief funding to the struggling Cotton industry.

If Gillibrand’s request came through, dairy farmers in New York would see about $8,000 in immediate emergency funding.

The Senator also acknowledged that a long-term solution also needs to be found in order to prevent more dairy farms from closing down across the state.

As a result, New York State Association of Counties and its Standing Committee on Agriculture and Rural Affairs hosted a webinar Wednesday to discuss the crisis.

The webinar was designed to educate county officials and state policy makers about the crisis facing the dairy industry, and why it matters to regional and local communities.

New York is the 3rd highest milk producing state, behind California and Wisconsin.

According to officials with the association, challenges facing today’s dairy farmers are unique in that milk prices have been on a steep decline since 2011 and farmers are facing increasing levels of costs and debt from investments in cutting edge farming technologies

The seminar was held because New York counties – including Chautauqua – provide support to farmers through agriculture programs, promoting local agriculture products and tourism, advocating for state agriculture funding, and working directly with farmers and producers.

For more about agriculture in our counties, visit http://www.nysac.org/agriculture.