🔒State distributes $11.8M in emergency aid to dairy farms

The state Department of Agriculture said Tuesday it has distributed more than $11.8 million in emergency stabilization payments to 64 dairy farms statewide. The payments are intended to provide immediate financial relief while a newly formed state working group begins work to develop long-term recommendations to support the industry. The payments are part of a $22.5 million dairy assistance package approved by the state legislature through the state's Federal Cuts Response Fund. According to the department, $11.8 million was processed during the June payment cycle; another $3 million is set for distribution in October. Participation notices were sent to all licensed cow dairy farms in the state within three days of the department receiving the funding, officials said, adding they continue to reach out to the remaining 11 farms to determine whether they will also participate in the program. The payments cover more than 98% of Connecticut's milk production, the department said. Each farm's payment was calculated at a rate of $5.5415 per hundredweight, based on its average monthly milk production over the previous six months. Agriculture Commissioner Bryan P. Hurlburt credited coordination among state agencies for allowing the payments to be distributed quickly. The dairy aid was approved by the state legislature earlier this year after state officials raised concerns about the financial pressures facing dairy farms here, including the potential effects of reductions in federal agricultural funding. The industry’s troubles were reflected in Guida-Seibert Dairy Co.’s announcement in May that its longtime New Britain plant will close, leading to the loss of 205 jobs by the end of this summer. In addition to the immediate relief, the state also has begun to examine longer-term strategies for supporting the industry. Under Public Act 26-75, the state Department of Agriculture established a Dairy Farming Sustainability Working Group charged with developing recommendations to improve the industry's long-term viability. The panel held its first meeting June 26 and includes representatives from state agencies, dairy cooperatives, independent producers and agricultural organizations. Among the issues the group will study are reimbursable tax credits, the potential use of Community Investment Act funding, expanding in-state milk processing capacity and property tax policies affecting dairy farms. The working group is required to submit its recommendations to the General Assembly by Jan. 1, 2027. The remaining $7.5 million from the state's dairy assistance package will be considered as part of those long-term planning efforts, state officials said.