Schumer to USDA: Be Ready to Help WNY Dairies Get the Right Insurance for their Needs

Press Release

Today at Sregnuoy Farm in North Java, U.S. Senator Charles E. Schumer urged the USDA to prioritize Wyoming County -- and Western New York -- dairy farmers for farmer education funding, so that dairies can acclimate to a new, vital, insurance program starting no later than September. The recently-passed Farm Bill includes an entirely new dairy support program that is a significant improvement from the expiring Milk Income Loss Contract (MILC) program, but requires farmers to make more individual decisions when enrolling. Specifically, Schumer said that there is $6 million in the Farm Bill that is dedicated for technical assistance and outreach and should be prioritized for dairy farmers. Schumer urged the USDA to proactively prepare their resources, and use the funds to educate and alert dairy farmers about the new margin insurance program and advise them on the best course of action. Sregnuoy Farm, for example, is interested to participate in the new margin insurance program if they can get the adequate support and resources to do so.

"The dairy industry is absolutely vital to Western New York's economy and the new Farm Bill will help dairy farmers across the state access affordable insurance policies through a new program this year. While the new program will be a big improvement over the previous system, the process will require dairies to make important decisions about their insurance, and I want to make sure the USDA is ready to help them every step of the way," said Schumer. "That's why I'm asking them to ready their resources now and prioritize funds in the Farm Bill for technical assistance and outreach for dairy farmers like Sregnuoy, because many of these small farms don't have the time or resources to fully understand how to best use the new program."

Schumer continued, "This new insurance program could be a better safety net for dairies, but only if they get the know-how from USDA on the best course of action. So we want the feds to get ready long before September -- when the new program goes into place -- and devote significant online and in-person resources to helping dairies adjust."

"New York's dairy farms will have some complicated decisions to make in the near future. Assistance from USDA will be very helpful in deciphering the new margin insurance program and the multiple decisions farmers will have to make in determining their coverage level. New York Farm Bureau greatly appreciates Senator Schumer's attention on the matter, and we are hopeful that expert technical assistance will be available as our farmers transition to this new safety net," said Dean Norton, New York Farm Bureau President.

"The success of the new margin protection program for dairy farmers will largely depend on how well they understand it, and can take advantage of what it offers," said Jim Mulhern, President and CEO of the National Milk Producers Federation. "The value to farmers of this new program will be greatly enhanced if the USDA devotes money to help educate them in the coming months. We commend Senator Schumer's effort to mobilize resources at USDA toward dairy farmer education."

Schumer was joined by owner Gus Youngers, his son Brian Youngers; Pat McCormick President of the Wyoming County Farm Bureau, Jeff Simons, the Vice-President of the Erie County Farm Bureau, representatives from the Wyoming County Cornell Cooperative Extension and other local stakeholders. Wyoming County is New York's top-producing dairy county.

Unlike the outgoing Milk Income Loss Contract (MILC), which expires on September 1st, the new dairy insurance program instituted by the Farm Bill will require a more individualized registration process. Dairy farmers will have to make decisions on how much of their historical output or base to cover and at what margin level to elect coverage under the new program. These decisions will largely be based on each individual farmer's business model; as a result, they will vary significantly. While the new program will require some adjustment, it will provide more accurate reimbursements once implemented, said Schumer.

Schumer explained that Congress included a sizeable pot of funding in the Farm Bill for the USDA to implement new programs, totaling $100 million. Of that funding, $6 million is planned for technical assistance and outreach: $3 million for State Extension Services to work directly with farmers and $3 million for the creation of web-based tools to help farmers understand and take advantage of the new programs. Schumer argued that dairy farmers will have to contend with an entirely new insurance program, and thus deserve to be prioritized for that technical assistance.

Because New York's dairy farms are typically smaller family farms, many lack the adequate time or resources to invest in an analysis of the new insurance program. Schumer said that the funding in the Farm Bill was passed with these types of farms in mind, and that the USDA's resources should be used to provide the guidance and technical assistance these dairy farmers need. The USDA will partner with universities to create the web tools and materials farmers will need to learn the new program. It is important that USDA prioritize dairy in these new tools to best educate farmers about the new insurance program. Local Farm Service Agency will be doing outreach as well.

Sregnuoy Farm was founded in 1919 by the grandfather of current owner Gus Youngers. The farm has around 260 milking cows and 300 heifers. Sregnuoy is part of the Upstate Niagara Cooperative, so all their milk goes to a wide range of New York dairy products and customers. Youngers said they would be interested in participating in the new milk insurance program once they fully understand all the details.

Overall, the dairy industry is New York's leading Agricultural sector, generating over $2.5 billion in revenue each year. New York produced more dairy than any other state besides California and Wisconsin.

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