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Tuesday, August 4, 2009 - 10:18am

Georgia Dairy Farmers Not Sure About Benefits of Price Supports

Updated: 5 years ago.
Government price support for dairy products might hurt the industry in the long run, one farmer says. (Photo courtesy U.S. Department of Agriculture)

The United States Department of Agriculture is increasing price supports for U.S. dairy farmers through October, but one Georgia farmer says it might do more harm than good.

Third generation dairy farmer, Everett Williams lives in Madison. He's also President of the Georgia Milk Producers. In July he testified before a House Committee on Agriculture. He told them price supports are not a good long-term solution because dairymen would be producing milk for the government and not the marketplace.

Over the last three years prices for milk have not kept up with the cost farmers pay to produce it. Right now they are losing money on every gallon they sell.

Milk prices are tied to cheese prices on the Chicago Mercantile Exchange. Williams says he would like the government to make sure traders are not manipulating the price of milk products. He says this is more of a permanent solution and will stabilize prices long-term.

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