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USDA help for dairy producers on the way

Some more help may be on the way for struggling dairy producers. U.S. Ag Secretary Tom Vilsack told a group of dairy farmers in New Hampshire yesterday he will announce a plan in the next week or so which will help producers stay afloat until prices recover. The plan includes providing farmers with operating loans at lower interest rates, reducing the principle of outstanding loans or allowing farmers to forgo payments for a time. The Secretary said his department is also working with commercial lenders to guarantee loans to dairy farmers.

To go with that, Vilsack says he has told his staff to assemble a commission to review the federal milk pricing system as ordered by the 2008 farm bill.

Producer milk prices are less than half what they were a year ago and well below the cost of production.