HARRISBURG, Pa. — In response to rising production costs and low milk prices, Pa. Gov. Edward G. Rendell has asked the federal government to help dairy farmers facing dire economic conditions.
The governor, along with seven of his colleagues from states in the Northeast, wrote to U.S. Secretary of Agriculture Tom Vilsack requesting debt forgiveness or an interest-free extension of at least six months on dairy farmers’ USDA loans.
Loans such as marketing assistance, federal housing administration, USDA guaranteed and direct, or low interest storage loans are a sizable portion of the debt many dairy farmers now hold, according to the governor.
Additionally, USDA loan delinquencies are causing reductions in other loan and payment programs that farmers need to stay afloat.
Pennsylvania’s dairy industry is the number one economic driver in the state’s agriculture industry, contributing more than $4 billion annually to the state’s economy.
