Higher Milk Prices Don't Help Dairy Farmers Much

By: Associated Press
By: Associated Press

RIVERDALE, Calif. (AP) - Milk prices are rising, but that's not helping a lot of dairy farmers, who are still struggling after several disastrous years.

They say the increase isn't enough to make up for a rise in feed costs as corn is diverted to ethanol. The situation is particularly bad in California, where most dairy farmers don't grow their own corn for feed.

Many dairy farmers are hoping the federal government will do something to help stabilize the industry.

A U.S. Department of Agriculture committee formed in response to the crisis issued its recommendations this month, and one was to create an insurance program that would pay farmers when the difference between milk and feed prices becomes too small.

No legislation has been written yet, but agriculture officials say it's coming.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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