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

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.