House Introduces $3 Trillion Stimulus Bill

Bob Gray

Earlier this afternoon the House of Representatives introduced “The Heroes Act”, a $3 Trillion Stimulus Package that follows up on the previous ones. It may be voted on by the end of this week. The Senate will not take this bill up right away or introduce a bill of its own. It prefers to “pause” until it sees how the earlier Stimulus funding has worked out.

Enclosed below are the Dairy Provisions in title II of the House bill. They will need to be analyzed particularly Section 60202 which provides cash flow assistance to small and mid-size dairies. I wanted to make sure you were aware of these dairy provisions right away. It is difficult to tell how long it will be before the House and Senate agree on another Stimulus Package.

Title II – Dairy

Section 60201. Establishes a direct dairy donation program to prevent dumped milk and facilitate rapid donations of displaced dairy products directly to feeding programs. Milk associated with donated products would be reimbursed at current Class I prices.

 





 

Section 60202. Provides necessary cash flow assistance to small and mid-sized dairies that have grown over the last seven years by establishing supplemental margin coverage based on the difference between 2019 actual production and Dairy Margin Coverage production history.

Section 60203. Authorizes an USDA recourse loan program for dairy processors, packagers, merchants, marketers, wholesalers, and distributors.

Section 60204. Reduces the cost of Dairy Margin Coverage premiums for operations that commit to participating in the program for 2021-2023 by providing a payment worth 15% of annual premium costs.

 





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