In a September 26^th announcement, the USDA will make available $58 million in marketing assistance to organic dairy producers through the Organic Dairy Marketing Assistance Program.  According to Zach Ducheneaux, Administrator of the Farm Service Agency “The program is designed to help organic dairies respond to challenges outside their control.”  He added, “Through this proactive engagement, we identified the need for and are pleased to offer increased payment rates and an adjusted production level for eligible cost-share assistance.”  The Marketing Assistance Program will incorporate a 57 percent increase in the payment rate to $1.68 per hundredweight and the limit level will be increased from five million pounds of milk to nine million pounds, extending assistance to more farmers.

While it is evident that organic dairy farmers and especially small family-operated units are impacted by consumer resistance to pay a high premium for the organic seal it is questioned whether public funds should be allocated to support a segment of the industry that is obviously unprofitable and will remain so.  There is no support program for either organic eggs or poultry with these segments of the agricultural industry subject to the vagaries of supply and demand and consumers’ willingness to pay. 

Why does the USDA support nonviable enterprises and attempt to restructure food production?  It is understood that a number of organic dairy operations have converted to conventional milk given the high cost of non-GM feed, and other onerous regulations that have little or no impact on the quality or nutrient composition of their products.