Dairy farmers to receive first cash assistance from state

MONTPELIER, Vt. --Dairy farmers who have been strapped by low milk prices, high fuel costs and heavy rains will receive their first cash assistance from the state this week.

Farmers will be paid nearly a dollar more per hundred pounds of milk they produced in June. The checks were mailed by Tuesday.

The state has pledged $8.6 million in cash assistance to help dairy farmers buy feed, replant crops and buy fuel.

Another $300,000 will go into programs designed to help farmers strengthen their businesses or convert to producing organic milk, which pays a higher price.

"This money should help farmers, but it won't be the answer to all of their problems," Gov. James Douglas said. "We still need assistance from the federal government to really help our recovery from the difficult spring conditions, low milk prices, and high fuel prices."

Vermont agriculture officials say the state's dairy farmers need $54 million in federal assistance to survive the next few months. But the Bush administration is opposed to the plan.