USDA Establishes $400 Million Dairy Donation Program Modeled After Michigan Efforts

Gleaners staff unloads milk purchased from a milk drive fundraiser.

Pandemic assistance for dairy farmers and consumers was announced today as part of the $400 million Dairy Donation Program. These dollars were secured in the March COVID Relief package.

“The benefits of the Dairy Donation Program (DDP) are threefold: it reduces food waste, makes sure farmers are paid for the milk they produce, and provides nutritious dairy products to American families,” says USDA Deputy Secretary Jewel Bronaugh. “When there is surplus milk production, we’re encouraging the milk to be donated instead of losing milk to loss and waste.”

Bronaugh adds that the goal of DDP is to facilitate timely dairy product donations when traditional purchase programs don’t move quickly enough.

“This new program is based off the milk donation program that was authorized in the 2018 Farm Bill, but can be used for a full range of dairy products, not just fluid milk,” she says. “It also reimburses dairy processors for a significantly larger portion of the cost of the donated product.”

The DDP was inspired by the partnership between the Michigan Milk Producers Association (MMPA) and the Food Bank Council of Michigan.

“It was great to take that milk donation program and put it in the 2018 Farm Bill to get it started,” says Michigan Sen. Debbie Stabenow, chair of the Senate Ag Committee. “This is now the next step with the Dairy Donation Program—broadening it, making it more effective with the money we put in the COVID package.”

Joe Diglio, president and CEO of MMPA, says the national program will help build on donation partnerships

“To have the ability to service those in need have been a founding principle of many producers throughout the country and certainly here in Michigan,” he says.

Bronaugh also explained that the USDA is improving the Dairy Margin Coverage Program to update the feed cost calculation. The change will be effective when the regulation is published. That announcement is expected to be made in September.

For more specifics on the Dairy Donation Program, click here.

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