The announcement follows letters from Peterson urging USDA to extend the MPP enrollment date and use their purchasing authority to address instability in the dairy industry.
Statement from Peterson:
"Today's announcement is welcome news. The combination of declining milk prices and record high cheese stocks has left many dairy farmers struggling. Through this cheese purchase, both farmers and those using USDA nutrition programs, will get some relief. Additionally, dairy farmers will have more time to enroll in MPP and protect themselves against potential future volatility.
"MPP is an improvement over the past dairy safety net but as we look ahead to the next farm bill, I will be working closely with my colleagues and dairy farmers across the country to improve upon the program."
USDA announced they would purchase 11 million pounds of cheese from private inventories, valued at $20 million, to assist food banks and pantries across the country. Plus, USDA said it would monitor the situation and take additional actions, if needed, later this fall.
USDA also announced it is extending the deadline for dairy producers to enroll in the Margin Protection Program (MPP) for Dairy to Dec. 16, 2016, from the previous deadline of Sept. 30.