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  1. Tropical Storm Irene is said here to have cost Vermont farmers either $6.5M or $7.4M; it is not clear whether state and federal relief programs address the same loses or different loses. Either way, TSI is just one bad day compared to the loss that Vermont dairy farmers will endure this year due to federal farm policy. The Federal Milk Marketing Order pricing system encourages, let’s say forces, Vermont dairy farmers to over supply their markets which drives milk prices below the average Vermont dairy farmer’s cost of production. That is why they are going out of business. This year, the policy will pay farmers in Vermont $16-17/cwt, which is $5/cwt below the average farmer’s cost. Since our dairy farmers produce 2.6B lbs of milk or 26M cwts, the Vermont industry is on track to lose $130M as a result of the policy. Governor Shumlin and Secretary Ross crow about giving them $5-6M in the face of this staggering loss but the Vermont dairy industry has not recovered from the disaster of 2009-10, when they traded what little equity they had left for cash to pay their bills, to stay in business one more year hoping for a better tomorrow. Tomorrow has arrived and nothing has changed. They have nothing left to pledge. The industry is about to show Mr. Shumlin and Mr Ross that $5-6M is a patch on their problems and how little prepared the state is to do anything meaningful to save them.

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