Missouri dairy farmers won’t be getting financial support under a state law meant to reimburse most of their federal dairy insurance premiums. Missouri Dairy Association Executive Director Dave Drennan says Governor Jay Nixon’s budget freeze of more than $1 million for the Dairy Revitalization Act is a huge blow.
“Without the state reimbursement, our folks are apprehensive about the new federal program. This is the third sign-up we’ve held and so, they’re sitting there – they have until December 16th to make a decision and we now know that we’re not going to get any support from the state,” says Drennan.
Nixon withheld this month an additional $57 million in the state budget.
“To buy up more coverage so that when we have a drought or we have a collapse in milk prices like we’ve been going through they would have some support. That’s an expense that we’re not in a good situation right now to afford without some assistance,” says Drennan.
Nixon blamed the restrictions on the legislature’s veto override of a bill that gives tax breaks to farmers receiving disaster or emergency aid. The Governor said the measure will lead to an estimated $50 million budget shortfall.
Julie Harker of Brownfield Ag News contributed to this story.