Agriculture is the largest industry in Pennsylvania and dairy is the single largest component of this industry. Over the past decade, however, Pennsylvania has lost an average of 300-500 farmers per year. Over the past several years, the prices have fluctuated greatly setting new record highs and lows, thereby making any long-term planning impossible for farmers. Price swings of 30 to 40 percent from one month to the next have almost become common in the past few years. While facing record low prices, Pennsylvania farmers were forced to face record droughts last year.
Costs are up in Pennsylvania, because farmers are now buying the feed they already tried to grow.
One of the factors that keeps Pennsylvania producers competitive traditionally is their ability to grow their own feed. With extremely low commodity prices nationwide and drought conditions in Pennsylvania, dairy farmers have lost that competitive aspect of producing milk in the State. We must work together to provide additional drought assistance to the hard hit dairy farmers who are struggling to economically survive each month. We must also work to ensure that we provide maximum funding for the Dairy Export Incentive Program. We must work to expand foreign markets if our dairy farmers are to be give a fair chance to succeed.