US dairy crisis, message from Willie Nelson & Farm Aid

The drastic drop in milk prices paid to farmers over the past year has led to an unprecedented crisis for dairy farmers who, on average, are being paid less than half the cost of production. Low prices and high production costs threaten to push nearly one-third of dairy farmers off their land over the next couple of months, strengthening corporate control of the dairy industry and severely impacting the health of local and regional economies nationwide.

“Setting a fair price for milk won’t fix all the problems that led to the current crisis, but it may be the only way to keep thousands of dairy farmers on their farms this year,” said Farm Aid board member Willie Nelson. “Unless Secretary Vilsack takes immediate action, huge areas of the United States may be left without any local dairy farms at all.”

Dairy farmers have been hit with a catastrophic combination of factors beyond their control. Farmers are struggling to pay bills from record high feed and fuel costs; adequate credit is increasingly impossible to come by; and the price of milk paid to farmers by processors collapsed a record 30 percent in January alone, and is currently down 50 percent since July 2008. In the meantime, the top dairy processors have recently announced 2009 first quarter earnings that are up from the same period last year. The top processor, Dean Foods, reported their first quarter earnings are more than double that of last year thanks in part to the plunging price Dean pays to its milk producers.

Under Section 608c (18) of the Agricultural Marketing Agreement Act of 1937, the Secretary of Agriculture is required to adjust the price of milk paid to farmers to “reflect the price of feeds, the available supplies of feeds, and other economic conditions which affect market supply and demand for milk and its products.” Farm Aid urges Secretary Vilsack to use this power to immediately institute a set price for milk that reflects the cost of production, keeping dairy farmers on their land.

“The U.S. has a tradition of local and regional milk distribution, making dairy farmers a base for strong local and regional economies. The loss of these farms will reduce spending in small businesses, investments in banks and shrink the community tax base. If we lose a third of our dairy farms in the next few months alone, imagine the impact on these economies by year’s end.” said Carolyn Mugar, executive director of Farm Aid. “As our independent family dairy farmers go out of business, our milk supply gets more consolidated by giant confinement dairies that do not contribute to our local economies or act of stewards of the land like our family farmers do.”

The petition can be accessed by going to this link.

I would like to disclose that I am (proud to be) interning at Farm Aid.

Victory is ours?

I am a little in awe of the news coming out of Washington today. Vilsack is turning out to be a dream come true. I first read a few articles on Grist. One called Prepping the Soil by Tom Laskawy in which he says:

There was some curiosity as to what stance U.S. Department of Agriculture chief Tom Vilsack would take in his speech this week before the National Association of Wheat Growers. Surprisingly, he came as the bearer of bad tidings. According to this report:

Vilsack called on farmers to accept the political reality that U.S. farm program direct payments are under fire both at home and abroad and therefore farmers should develop other sources of income. In his remarks to the groups he said he intends to promote a far more diversified income base for the farm sector, saying that windmills and biofuels should definitely be part of the income mix and that organic agriculture will also play an increasing role.

Then, I read a couple other articles on Grist. One by Tom Philpot, called More to Vilsack than Meets the Eye and another by Tom Laskawy called Vilsack sets the table: It's official: Nutrition will play a big role in reform at the USDA. Both articles allude to the change in the air at USDA. Should I be rubbing my eyes? Apparently YES, because then I found this news release from USDA today:

WASHINGTON, Feb. 12, 2009 -- Agriculture Secretary Tom Vilsack today "broke pavement" on the inaugural USDA The People's Garden during a ceremony on the grounds of U.S. Department of Agriculture (USDA) commemorating the 200th birthday of Abraham Lincoln. The Secretary declared the stretch of pavement permanently closed and returned back to green, and encouraged other Administration officials and the general public to join in to protect the Chesapeake watershed.

"It is essential for the federal government to lead the way in enhancing and conserving our land and water resources," said Vilsack. "President Obama has expressed his commitment to responsible stewardship of our land, water and other natural resources, and one way of restoring the land to its natural condition is what we are doing here today - "breaking pavement" for The People's Garden."

The dedication comes on the 200th anniversary of the birth of the 16th President of the United States, Abraham Lincoln. Lincoln founded the Department of Agriculture in 1862 and referred to it as "The People's Department" in his last annual message to Congress.

The commemoration of the Abraham Lincoln Bicentennial is only the first step in the Department of Agriculture's celebration of President Lincoln's life. During today's ceremony, Secretary Vilsack announced the goal of creating a community garden at each USDA facility worldwide. The USDA community garden project will include a wide variety of garden activities including Embassy window boxes, tree planting, and field office plots. The gardens will be designed to promote "going green" concepts, including landscaping and building design to retain water and reduce runoff; roof gardens for energy efficiency; utilizing native plantings and using sound conservation practices.

The USDA People's Garden announced today will eliminate 1,250 square feet of unnecessary paved surface at the USDA headquarters and return the landscape to grass. The changes signal a removal of impervious surfaces and improvement in water management that is needed throughout the Chesapeake Bay Watershed.

The new garden will add 612 square feet of planted space to an existing garden traditionally planted with ornamentals. The garden will showcase conservation practices that all Americans can implement in their own backyards and green spaces. As a component of the garden, pollinator-friendly plantings will not only provide important habitat for bees and butterflies, but can serve as an educational opportunity to help people understand the vital role pollinators play in our food, forage and all agriculture. The garden plot is adjacent to the site of the USDA Farmer's Market.

About 100,000 streams and rivers thread through the Chesapeake's 64,000-square-mile watershed, which is home to almost 17 million people in Virginia, Maryland, Pennsylvania, West Virginia, Delaware, New York and the District of Columbia. The Chesapeake Bay is the largest estuary in North America, with a length of 200 miles and 11,684 miles of tidal shoreline, more than the entire U.S. West Coast. The Chesapeake Bay supports more than 3,600 species of plants, fish and animals.

USDA leads efforts on public and private lands to help reduce the impact of nutrient and sediment pollution on wildlife habitat, forest lands and water quality, as well as supporting community involvement in managing natural resources, urban green space and land stewardship. For more information about USDA, the People's Garden, the Chesapeake Bay Watershed and other conservation and agriculture related programs available in local communities, visit a USDA Service Center or go to the USDA Web page at www.usda.gov.

Further research on the USDA website revealed this picture of Vilsack "breaking ground" on the garden.

(USDA Photo 09di1236-028)

I would have to agree that this is ground breaking. Cheers to Vilsack for making a bold statement and taking a stand to the status quo.