Dairy Provisions, SNAP Program Cuts Included in Final Federal Budget Reconciliation Bill

The Wisconsin Cheese Makers Association (WCMA) today lauded dairy provisions in the federal budget reconciliation bill passed by Congress. WCMA also expressed concern about funding cuts for the federal Supplemental Nutrition Assistance Program (SNAP). President Trump is expected to sign the bill into law on Friday, July 4. 

The final package provides funds to the U.S. Department of Agriculture to perform cost-of-production surveys for the dairy industry to support future adjustments to milk pricing formulas in federal milk marketing orders. The data gathered in these surveys will inform future updates to make allowances in federal milk pricing formulas. 

The reconciliation bill also extends key commodity support programs, including the Dairy Margin Coverage (DMC) program, through 2031. This voluntary program helps dairy producers protect themselves from fluctuations in milk and feed prices. 

“Dairy processors seek success and stability not just for their own businesses, but for their farmer partners. As we saw during the recent milk price reform process, the industry is united in its support for regular cost-of-production surveys,” said Rebekah Sweeney, WCMA Senior Director of Programs & Policy. “We’re pleased to see lawmakers’ action to support these surveys, as well as the DMC safety net for dairy farmers.” 

The budget reconciliation package cuts $186 million from the Supplemental Nutrition Assistance Program (SNAP), shifting responsibility for financing up to 25 percent of these benefits to states, and adding new restrictions and work requirements for eligibility. 

“Some 41 million Americans – including millions of children and seniors – rely on SNAP to purchase fluid milk, cheese, and other nutritious dairy products for themselves and their families,” said Sweeney. “Restricting SNAP access, through decreased federal support or increased barriers, risks long-term consequences to Americans’ health, and impacts dairy businesses that help drive our economy."