New insurance program keeps dairy farms afloat
SHERBURNE – With a new program in place to help protect local dairy farmers from lost income, U.S. Senator Charles Schumer is now urging the United States Department of Agriculture to educate farmers on insurance options to keep their business out of the red.
The new Dairy Insurance Program, passed in February as part of the new five-year Farm Bill, will replace the outgoing Milk Income Loss Contract (MILC) Program which is set to expire on Sept. 1. Schumer says the new insurance program is a significant improvement over MILC in protecting farmers from lost income due to natural disasters.
But with a new program comes a need for outreach and education, and farmers need to know what steps to take to protect themselves, he said.
On Monday, Schumer visited the Van Althuis Farm in Sherburne where he called on the USDA to prioritize $6 million for farmer education on crop and insurance programs for New York dairy farmers. Funding for technical assistance and outreach will help farmers make informed decisions about how much of their business they should cover and at what level.
With a booming yogurt industry and growing overseas markets for milk, cheese and other dairy products, the protection and prosperity of dairy producers is at an all-time high, even though costs of operation continue to climb.
“Our farmers face such volatility … the Dairy Margin Program supports farmers in these difficult times and builds a strong safety net when an act of God puts farmers in a very tough place,” said Schumer. “In order for the new insurance program under the Farm Bill to benefit farmers as intended, our farmers have to know all the options.”
Approximately $6 million is already incorporated in the new Dairy Insurance Program for education outreach – $3 million for the USDA to partner with state extension services and $3 million for additional web-based services. Schumer said now is the time to utilize that funding so that advisors can help farmers stay ahead of the curve.
“For our dairy farmers, it's particularly important because this is a whole new system. MILC is gone, the new program is in … Dairies are going to have to make some changes to receive the benefits enacted through the bill and it's important that federal officials guide our farmers through the process.”
While the new Dairy Insurance Program has garnered support from local entities including the local chapter of the New York Farm Bureau and the Cornell Cooperative Extension of Chenango County, the devil is in the detail, explained Keith Van Althuis, operating partner at the Van Althuis Dairy Farm.
“I don't have enough information to judge it,” Van Althuis said. Like many farmers, he said he has fallen back on the MILC safety net in the past. But there are concerns that the new Dairy Insurance Program will cause insurance premiums to rise, he added.
Nevertheless, consequences of the new program won't be known until it goes into effect and MILC is completely phased out.
“This new program is much different,” Van Althuis noted. “Farmers will have to invest in this program whereas in the past, it was a government run program. In some ways, I like the fact that there is a required investment.”
Said Chenango County Farm Bureau President Bradd Vickers, “It's far better than the MILC program. This new program has more flexibility and is more beneficial for small farms like we have in Chenango County … If they want greater, expansion (farmers) can actually buy in and get additional coverage.”
Ken Smith, executive director of the Cornell Cooperative Extension of Chenango County, said while details of the new insurance program may not be clear, efforts to preserve the local dairy scene is critical for the state of the local economy.
“For the past 150 years, the New York dairy industry has been the most powerful and reliable part of the New York State economy,” said Smith. “There's really no limit to the future of the dairy industry provided we show the proper stewardship … Given the resources we have, the farmers we have, and the kind of leadership we have, we look to have dairy in the New York State economy for years to come.”
The new Dairy Insurance Program, passed in February as part of the new five-year Farm Bill, will replace the outgoing Milk Income Loss Contract (MILC) Program which is set to expire on Sept. 1. Schumer says the new insurance program is a significant improvement over MILC in protecting farmers from lost income due to natural disasters.
But with a new program comes a need for outreach and education, and farmers need to know what steps to take to protect themselves, he said.
On Monday, Schumer visited the Van Althuis Farm in Sherburne where he called on the USDA to prioritize $6 million for farmer education on crop and insurance programs for New York dairy farmers. Funding for technical assistance and outreach will help farmers make informed decisions about how much of their business they should cover and at what level.
With a booming yogurt industry and growing overseas markets for milk, cheese and other dairy products, the protection and prosperity of dairy producers is at an all-time high, even though costs of operation continue to climb.
“Our farmers face such volatility … the Dairy Margin Program supports farmers in these difficult times and builds a strong safety net when an act of God puts farmers in a very tough place,” said Schumer. “In order for the new insurance program under the Farm Bill to benefit farmers as intended, our farmers have to know all the options.”
Approximately $6 million is already incorporated in the new Dairy Insurance Program for education outreach – $3 million for the USDA to partner with state extension services and $3 million for additional web-based services. Schumer said now is the time to utilize that funding so that advisors can help farmers stay ahead of the curve.
“For our dairy farmers, it's particularly important because this is a whole new system. MILC is gone, the new program is in … Dairies are going to have to make some changes to receive the benefits enacted through the bill and it's important that federal officials guide our farmers through the process.”
While the new Dairy Insurance Program has garnered support from local entities including the local chapter of the New York Farm Bureau and the Cornell Cooperative Extension of Chenango County, the devil is in the detail, explained Keith Van Althuis, operating partner at the Van Althuis Dairy Farm.
“I don't have enough information to judge it,” Van Althuis said. Like many farmers, he said he has fallen back on the MILC safety net in the past. But there are concerns that the new Dairy Insurance Program will cause insurance premiums to rise, he added.
Nevertheless, consequences of the new program won't be known until it goes into effect and MILC is completely phased out.
“This new program is much different,” Van Althuis noted. “Farmers will have to invest in this program whereas in the past, it was a government run program. In some ways, I like the fact that there is a required investment.”
Said Chenango County Farm Bureau President Bradd Vickers, “It's far better than the MILC program. This new program has more flexibility and is more beneficial for small farms like we have in Chenango County … If they want greater, expansion (farmers) can actually buy in and get additional coverage.”
Ken Smith, executive director of the Cornell Cooperative Extension of Chenango County, said while details of the new insurance program may not be clear, efforts to preserve the local dairy scene is critical for the state of the local economy.
“For the past 150 years, the New York dairy industry has been the most powerful and reliable part of the New York State economy,” said Smith. “There's really no limit to the future of the dairy industry provided we show the proper stewardship … Given the resources we have, the farmers we have, and the kind of leadership we have, we look to have dairy in the New York State economy for years to come.”
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