Daily Report for Executives provides in-depth coverage of unfolding legislative, regulatory, and judicial news from the nation’s capital, the states, and around the world. This daily news service...
By Casey Wooten
Oct. 11 — The Agriculture Department is going back for seconds.
The agency is buying up as much as $20 million in surplus cheese from U.S. dairy producers, according to an Oct. 11 announcement that marks the second round of cheese purchases by the USDA in two months. In August, the department bought up about $7 million worth of cheese.
The cheese buy-up signals the Agriculture Department's continued effort to serve as a backstop for farmers hit by low commodity prices over the past three years.
The USDA said it would issue a solicitation shortly, with the surplus cheese to be delivered to food banks and food assistance recipients starting March 2017.
“While our analysis predicts the market will improve for these hardworking men and women, reducing the surplus can give them extra reassurance while also filling demand at food banks and other organizations that help our nation's families in need,” Agriculture Secretary Tom Vilsack said in an Oct. 11 statement announcing the purchases.
The U.S. cheddar cheese block trading price is down from about $2.40 per pound in September 2014 to about $1.50 per pound in October 2016, a drop of 37 percent, according to Bloomberg data.
In August, the USDA paid out $11.2 million to dairy farmers as part of its margin protection program (See previous story, 08/05/16).
Across the agriculture space, low prices have triggered USDA programs to offer financial aid to farmers. The department is set to disburse more than $7 billion in subsidy payments for the 2015 crop year, driven in part by high yields in crops like corn, wheat and soybeans, the USDA said Oct. 4 (See previous story, 10/05/16).
To contact the reporter on this story: Casey Wooten in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Heather Rothman at email@example.com
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)