More dairy farmers may qualify for grants through the DAIRI program

Rep. Paul Anderson (R-Starbuck) knows firsthand how difficult it is to be a dairy farmer: “It’s a hard job, capital intensive, 24/7, seven days a week, all year round.”

A bill approved Wednesday by the House Agriculture Finance and Policy Committee, that he co-chairs, would help more dairy farmers stay afloat in this challenging profession by permitting more of them to qualify for grants through the Dairy Assistance, Investment, and Relief Initiative program, managed by the Department of Agriculture.

Rep. Nathan Nelson

Sponsored by Rep. Nathan Nelson (R-Hinckley), HF3508 now goes to the House Ways and Means Committee.

Current law provides DAIRI grants to dairy farmers who enroll in the U.S. Department of Agriculture Farm Service Agency’s Dairy Margin Coverage Program. Awards are based on the amount of milk produced in 2022.

The bill would allow dairies whose milk production history started after 2022 to benefit from the program, which Nelson said would channel more money to emerging dairy farmers who might need the most help.

He estimated the change would open the grants up to between 30 and 40 new dairy farmers.

“This program is more than just a safety net, it’s a launch pad,” said Garrett Luthens, president of Minnesota Milk Producers Association. “It gives new and beginning farmers the risk management tools they need to survive, for now and for the future.”

Makenzie Mealey, a junior at Glencoe-Silver Lake High School and a member of Future Farmers of America, was one of several testifiers who expressed gratitude for the program.

Most farmers have to work a second job outside the farm to survive, she said, and that includes both her parents.

Her family operates a first-generation dairy farm and received a small DAIRI grant that helped her parents get started in the dairy business.

“Financial struggles with a new dairy farm are a huge problem. A lot of new farmers starting up have almost nothing to work with,” she said.