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Gov. Ed Rendell has appealed to the state's Milk Marketing Board for ways to aid the state's struggling dairy farmers.
Rendell said milk prices have fallen 40 percent since this time a year ago, and dairy farmers need ways to survive "unprecedented financial hardships."
"Pennsylvania's dairy farmers are bearing the brunt of historically low milk prices, coupled with historically high production costs," Rendell said in a letter to the Milk Marketing Board dated Sept. 15.
"The crisis is forcing dairy herds to be sold and farmers to cease operations, some of which have been family-owned and operated for decades. This crisis has thrown the largest sector of Pennsylvania agriculture into a free fall from which recovery remains uncertain at this time.
"Efforts are under way at the national level to address pricing and supply issues, but in Pennsylvania, the Milk Marketing Board can act to provide relief from these challenges and ensure our milk producers earn a reasonable return and profit for their hard work."
In a letter to the board's members, the governor requested an analysis and set of recommendations in the next 30 days that will outline what more the board can do to address the milk price collapse.
Under state law, the board is responsible for protecting the state's dairy industry and is charged with setting prices based upon all conditions affecting the milk market, including the amount necessary to yield a reasonable return to the producer.
In July, Rendell, along with the governors of seven Northeastern states, called on U.S. Department of Agriculture Secretary Tom Vilsack to offer dairy producers debt forgiveness or an interest-free extension of at least six-months on USDA loans.
The governor also has directed the Pennsylvania Department of Agriculture to work with members of Congress, the General Assembly and the dairy industry to mitigate the damage to milk producers statewide.
"Too many Pennsylvania producers are struggling because of conditions beyond their control," Rendell said.
"We need to use all of our authority at the state and federal levels to take immediate action ensuring Pennsylvania's dairy industry remains competitive nationwide."
Last month, Vilsack temporarily raised milk price supports. Earlier this month, he announced he would establish a Dairy Industry Advisory Committee to review the issues of farm milk price volatility and dairy farmer profitability.
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