upstate dairy farmers

Press Release: 

After standing with Upstate NY dairy farmers in Central NY, the North Country, and the Finger Lakes, U.S. Senate Majority Leader Charles E. Schumer today revealed that he has secured an extension for the vital Dairy Margin Coverage (DMC) Program dairy farmers rely on, that was set to expire this year, and which could’ve left farmers facing a “dairy cliff,’ cutting off payments to farmers and harming consumers by raising the price of milk. Schumer secured the extension of the Farm Bill in the Continuing Resolution budget deal which President Biden signed today.

“Our dairy farmers are the beating heart of Upstate, and when they came to me worried that this year we could be going over the ‘dairy cliff,’ I immediately started ringing the cowbell and promised I would churn up support to ensure these payments wouldn’t lapse. I helped enact the Dairy Margin Coverage Program in the 2018 Farm Bill, and I am proud to have secured this vital year-long extension while we work to develop a bipartisan Farm Bill in the next year,” said Senator Schumer. “Today our dairy farmers can breathe a sigh of relief and raise a glass of Upstate NY-made milk and more thoroughly enjoy this Thanksgiving.”

Schumer explained the “dairy cliff” refers to the expiration of the Dairy Margin Coverage (DMC) program, a risk management tool that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. The dairy industry would be the first impacted, as dairy farmers would lose out on monthly payments through the DMC, whereas farmers participating in other support programs are paid just once per year around harvest time. If we went “over the dairy cliff” that would have meant an end to monthly price support payments to dairy farmers who participate in the Dairy Margin Coverage program, supply chain disruptions causing increased milk prices, and potentially billions in wasted government spending as the federal government would be forced to make milk purchases at a highly inflated price.

Schumer fought tooth and nail to include a one-year Farm Bill extension in the Continuing Resolution budget deal and ensure dairy farmers were protected from going over the cliff at the end of the year. The extension keeps the vital Dairy Margin Coverage Program intact for another year to protect NY’s critical dairy industry while also giving members of Congress extra time to continue to work through the negotiations for the full Farm Bill.

The dairy industry is one of New York's largest contributor to the agricultural economy. According to the New York State Department of Agriculture and Markets Dairy statistics, there are approximately 3,200 dairy farms in New York that produce over 15 billion pounds of milk annually, making New York the nation’s fifth largest dairy state.

Press release:

Last week, U.S. Senate Minority Leader Charles E. Schumer spoke directly to United States Trade Representative Robert Lighthizer to urge him to secure a level playing field with Canadian producers during the renegotiation of the North American Trade Agreement (NAFTA).

According to Schumer, in recent years, Canada has established dairy pricing policies and has maintained high tariffs that have effectively created a “Dairy Wall” -- stopping most U.S. dairy products from accessing Canadian markets and distorting global trade. Dairy farmers and producers from across New York State have been severely hurt by Canada’s manipulative and protectionist dairy trade practices, and it will only get worse without action.

Schumer, in his call, urged USTR Representative Lighthizer to press forward during NAFTA negotiations to secure free and fair trade for dairy farmers and producers in New York State and beyond. While NAFTA negotiations have stalled and there have been no scheduled NAFTA rounds, new rounds of negotiations are anticipated.

“During my call with United States Trade Representative Lighthizer, I made it clear that our hardworking New York dairy farmers and producers across Upstate New York are the most competitive in the world, but they depend on stable and fair rules to compete fairly in the nearby Canadian market," Senator Schumer said. "But Canada has erected a de facto protectionist ‘dairy wall’ and is not playing by the rules, and the current NAFTA renegotiation must be used to rectify that.

"I urged Representative Lighthizer to do more and do it now, so that dairy farmers and producers can finally compete on a level playing field, and am calling on him again to use this opportunity to fix the unfair Canadian dairy trade barriers that have plagued dairy farmers and producers across Upstate New York.”

Schumer explained Canada has an unfair advantage over New York dairy farmers and producers. In addition to Canada’s 270-percent tariff on milk, a program called the “Class 7” pricing program, a market-distorting supply management system, has caused severe pain to New York dairy producers since it came into force last year.

In fact, Canada has used the Class 7 program to triple its milk powder exports in the past year, by creating excess milk production capacity within Canada then dumping the resulting milk powder onto world markets. To further prove this dumping exists, Schumer added that Canada’s dairy farmers are some of the highest paid in the world, yet Canadian dairy companies are still able to be among the lowest cost sellers of Class 7 products globally.

Schumer made clear in his call that as the United States, Canadian and Mexican trade officials are closing in on a deal to revamp NAFTA, dairy farmers must be protected, and that more must be done to finally dismantle Canada’s market-distorting policies and ensure a level playing field for Upstate New York ’s dairy farmers and producers.

Schumer said that he has directly stressed the importance of securing meaningful changes in our dairy trade relationship with Canada to past and current administration officials, including President Trump, current United States Trade Representative Robert Lighthizer, Canadian Ambassador to the United States David MacNaughton, and the U.S. Ambassador to Canada Kelly Craft -- who have all committed to address this issue.

Recently, Schumer joined Senator Tammy Baldwin (D-WI) and Speaker Paul Ryan (R-Wisconsin) to urge U.S. trade officials to do more to secure a level playing field with Canadian producers during NAFTA negotiations.