PDMP Stands Behind Dairy MAX Legislation

In Mid-June Senator Roger A. Madigan and Representative Art Hershey focused the attention of PA’s Legislature on the dairy industry and the huge impact we have on the economy. With the introduction of the Dairy Modernization or Expansion Tax Credit Program (Dairy MAX), bills are now moving through both houses that can help ensure the sustainability of dairy farms and stabilize the future of agriculture in the Commonwealth. (SB 1486 and HB 2604)

PDMP is enthusiastically supporting Dairy MAX, which includes a tax credit of 25% of the costs associated with dairy farm modernization or expansion for qualified applicants.  If passed the bill will make available a total of $50 million in tax credits in each of the next five fiscal years.  The credit, capped at $250,000 per farm, can be used by the producer, sold, or transferred to a sponsor who finances the project.

The attached documents provide a better understanding of Dairy MAX and its benefits. These are the key points:

The Dairy MAX legislation will serve as a tremendous boost to producers.  As PDMP pointed out in a letter of support sent to members of the House and Senate:

“If Pennsylvania is to remain among the nation’s leading dairy states, it will be necessary for our dairy farms to modernize, expand and add technology . . . For Pennsylvania’s dairy families, who are already struggling with very narrow profit margins, investing in expansion and technology is often cost prohibitive.  The Dairy MAX tax credit program can provide the incentive for a family farm to make the decision to move forward and invest in the dairy operation, or for the next generation of that family to continue the family business and commit to expansion and modernization.”

Dairy MAX will offer dairy producers the opportunity to offset the costs of improving aging facilities and adding new technology. Improved cow comfort and other facility enhancements will help producers grow the family business and see increased profitably. Addition of new technologies in cow comfort, animal handling, milking and feeding procedures, milk quality, and animal tracking will lead to improved efficiency.

But the benefits stretch beyond our own dairy farms:

• The additional on-farm income is expected to provide in excess of $400 million in returns for the state’s economy.
• With expansion, it anticipated the state could see the creation of 2800-3400 new jobs
• The anticipated 8 to 10% increase in milk supply will support the Northeast’s dairy processing infrastructure.
• Sustaining the local milk supply will also enable processors to manufacture products closer to their market with a significant reduction in costs.

Ultimately the tax payer will also benefit from new jobs and stronger businesses, better access to locally produced dairy products, a cleaner environment, and a return of revenue to the local economy.

DAIRY-MAX: Benefits to Producers, PA’s Economy, the Marketplace and the Taxpayer

PDMP Letter of Support to Legislators

Dairy-MAX is good for farm families, PDMP urges legislative support

PDMP News Release