| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

USDA updates dairy insurance program

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Friday, Aug. 29, 2014, 12:01 a.m.

Dairy farmers squeezed in recent years by low milk prices and high feed costs can begin signing up next week for a new program replacing old subsidies that didn't factor in the price of corn.

Sign-ups for the program will run Sept. 2 to Nov. 28, U.S. Agriculture Secretary Tom Vilsack announced on Thursday. Farmers must enroll then to participate in the program in what's left of 2014 and in 2015. There will be annual sign-ups after that.

The new program is a kind of insurance that pays farmers when the difference between milk prices and feed prices shrinks to a certain level. The previous program paid farmers when milk prices sank too low, but it didn't account for their costs.

Dairy farmers have struggled in recent years even with good milk prices. Feed costs rose because of demand for corn from the ethanol industry and droughts, including one in 2012 that covered two-thirds of the nation.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Business Headlines

  1. Education tech firm Acrobatiq does software to supplement college learning
  2. Tesla investors leery as shares, targets plummet
  3. Budweiser brewer AB InBev wants to take over SABMiller for $108.2B
  4. Kombucha producers resist call to indicate alcohol content on labels
  5. CMU showcases its lengthy list of fledgling companies at venture event
  6. Wabtec buying Australian sensor maker Track IQ
  7. Chesapeake Energy appoints Brad Martin chairman of the board
  8. Class action lawsuit in California seeks Volkswagen buyback
  9. Barclays said to plan to appoint Jes Staley as bank’s next CEO
  10. As craft fades, personal touch helps Northway Shoes & Repair thrive
  11. Safety of credit cards up to banks