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Letter to the Hon. Sonny Perdue, Secretary of Agriculture - Provide Relief to Dairy Farmers

Dear Secretary Perdue:

We write today to urge the United States Department of Agriculture (USDA) to use its existing authority to provide relief to dairy farmers in New England and across the country. Specifically, we request you take necessary steps to make milk an agricultural commodity eligible for Federal Crop Insurance and ask that you work with the Risk Management Agency (RMA) to develop additional insurance products for dairy farmers.

While New England dairy farms tend to be smaller, our dairy community is doing its best to run productive operations that turn a profit. New England's nearly 1,500 dairy farms are almost all family owned and operated. These dairy farms produced 4.25 billion pounds of milk in 2016, an increase of 68 million pounds from 2014. Despite this growth and efficiency, dairy farmers have had to cope with double-digit price declines year over year since 2014.

These struggles are amplified by ongoing difficulties with the Margin Protection Program (MPP) and a lack of other risk management options. In 2015, over 700 New England farms enrolled in MPP buy-up coverage. The program's failure contributed to its dramatic decline in participation. In 2017, enrollment in this buy-up coverage plummeted by 96 percent, with fewer than 30 New England farms purchasing buy-up coverage. Low signup is clear evidence that MPP isn't providing farmers the needed risk protection. As Congress begins work to reauthorize the Farm Bill, we intend to make necessary reforms to this program.

In the meantime, we believe it's imperative that the USDA take action to address issues created by MPP's failure. We urge you to utilize existing authorities to expand and enhance insurance products for dairy farmers. Milk, a commodity by any measure, must be eligible for a range of policies through the Federal Crop Insurance Program.

Existing statute defines the term "livestock' as the actual animal and not the product produced. The Consolidated Appropriations Act of 2017 included report language clarifying that Congress did not intend for livestock products to fall under the limitation of livestock insurance policies. Both existing statute and follow-on clarification illustrates USDA has the authority to determine livestock and livestock products are distinct commodities. We request that RMA work with the Federal Crop Insurance Corporation to determine milk as a distinct agricultural commodity eligible for Federal Crop Insurance coverage. Additionally, we would urge the RMA to use existing authorities to develop additional dairy insurance products.

Thank you for considering these concerns, and we look forward to working with you in your new role.

Sincerely,

Christopher S. Murphy Joe Courtney
United States Senate Member of Congress

Patrick Leahy Ann McLane Kuster
United States Senate Member of Congress

Susan M. Collins Stephen F. Lynch
United States Senate Member of Congress

Edward J. Markey Peter Welch
United States Senate Member of Congress

Jeanne Shaheen Bruce Poliquin
United States Senate Member of Congress

Jack Reed James R. Langevin
United States Senate Member of Congress

Elizabeth Warren Niki Tsongas
United States Senate Member of Congress

Richard Blumenthal Chellie Pingree
United States Senate Member of Congress

Bernard Sanders Carol Shea-Porter
United States Senate Member of Congress

Margaret Wood Hassan Richard E. Neal
United States Senate Member of Congress

Angus S. King Jr. John B. Larson
United States Senate Member of Congress

Sheldon Whitehouse James P. McGovern
United States Senate Member of Congress

Elizabeth H. Esty William R. Keating
Member of Congress Member of Congress

David N. Cicilline
Member of Congress


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