What subsidies do dairy farmers receive in the US?

Published 2022년 5월 18일

Tridge summary

The article highlights the significant difference in support for dairy producers between Colombia and the United States. It points out that Colombian companies import powdered milk from the US despite its high international price due to export incentives for American farmers. These incentives include tariff barriers, subsidies for dairy product exports, high minimum prices for certain dairy products, and programs to purchase and cull dairy herds to decrease milk production and increase prices. The US Department of Agriculture also buys dairy products to maintain a minimum price for milk used in dairy products. In 2002, the USDA provided $2 billion to producers to offset market volatility caused by the pandemic, with nearly $350 million of this funding going to dairy farmers for past undervaluation of their products.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

When the dairy sectors of Colombia and the United States are compared, support for producers in the latter stands out as the biggest difference. Find out what kind of aid farmers have received in the world's leading power that makes them more competitive internationally. Óscar Cubillos, head of the Planning and Economic Studies Office of Fedegán-FNG, pointed out that Colombian companies import powdered milk from the US despite its high international price because producers in that country receive incentives when it comes to export. “Since all the milk is more expensive in the world, bringing it from the US is still cheaper than that from Colombia. What has prevented a greater volume is the exchange rate, because when it decreases a little as it happened recently, imports immediately rise," he said. Indeed, several programs implemented by the US government in recent decades have aimed to subsidize the owners of cattle that produce milk. (Read: The United States will support its ...
Source: MXContexto

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