Source: POLITICO'S MORNING AGRICULTURE 8/15/18

The department is lending a helping hand to the struggling U.S. dairy industry — and to low-income residents — by buying up to $50 million of fluid milk. That amounts to buying about 11 million to 13 million gallons, Pro Ag's Catherine Boudreau writes.

The purchase is intended "to encourage the continued domestic consumption of these products by diverting them from the normal channels of trade and commerce," according to USDA. The milk will be distributed to food assistance programs like food banks.
Helping the needy: Food banks are in need of milk but get few donations — only about one gallon of milk per person, per year.

"Milk is one of the most requested nutrition staples at food banks, yet it is rarely available," said Julia Kadison, chief executive officer at MilkPEP, a coalition funded by the nation's milk companies.

Flexing old authority: Dairy groups said this is the first time USDA has bought milk using its authority under Section 32 of the Agricultural Adjustment Act Amendment (a Depression-era law), which allows the department to support farmers by purchasing surplus commodities.

The move is not related to the trade-aid program that USDA announced recently, but dairy farmers across the country have fallen on tough times as milk prices remain low amid a global oversupply. For example, Wisconsin, one of the leading dairy states, lost 500 dairy farms last year as producers struggle to remain profitable, according to that state's agriculture department.