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Drying Up Government Aid Set to Rock U.S. Dairy Producers

A cow stands inside the dairy barn at a farm in Ancramdale, New York, in May.

A cow stands inside the dairy barn at a farm in Ancramdale, New York, in May.

Photographer: Angus Mordant/Bloomberg

America’s dairy farmers could face another price hit this year as a slowdown in government purchases combines with reduced demand from schools.

Dairy products have gotten a boost from the U.S. Department of Agriculture’s Farmers to Families Food Box program, which includes plans to buy as much as $4 billion worth of food to distribute to those in need. The government purchases have helped to send milk prices on a tear recently. But the program is slated to wind down, and concerns are rising over whether that rally will be sustainable.