Dairy task force urges steady funding for stabilization program, more processing and technical assistance

The Legislature's dairy task force presented 11 recommendations to the Joint Standing Committee on Agriculture, Conservation and Forestry focused on stabilizing Maine's dairy sector. The group's central recommendation: fully fund the state's Dairy Stabilization (TIER) program at the current cost-of-production level and establish a baseline allocation to reduce year‑to‑year payment volatility.

Task-force members told the committee that the TIER program is a proven price‑support tool that stabilizes dairy farm operations and that the program is most effective when it is fully funded. "Fund the TIER program at the current cost-of-production level," the presenter said, summarizing the group's top priority.

The task force reported that Maine's dairy sector supports about 700,000 acres of land and roughly 14,600 jobs and that dairy infrastructure supports many other parts of the rural economy, including veterinarians, equipment dealers and feed suppliers. Members noted that the number of dairies was 141 in June 2024 and had fallen to 137 at the time of the report, underscoring the pace of farm attrition.

Beyond TIER funding, the task force recommended: - Establishing a baseline funding allocation (the group discussed a median baseline in the $10–$12 million range) to reduce funding volatility and improve predictability for both producers and the Legislature. - Expanding on‑farm technical service capacity (financial and business planning, processing and infrastructure modernization, succession planning and interstate commerce expertise). - Supporting expansion of dairy processing capacity, including on‑farm and in‑state processors. - Creating a Maine Dairy Resource Hub to centralize technical assistance, funding programs and provider lists. - Supporting farmer learning networks and farm-transfer programs, including tax-credit options and targeted incentives for agricultural buildings and grain storage.

The task force also recommended considering bond funding and other revenue sources to support infrastructure and program expansion. Members noted work already underway at the University of Maine Cooperative Extension and flagged a pending industry economic impact study by Camoin Associates for the Maine Dairy Industry Association.

Representatives of the Maine Dairy Industry Association and several farmers urged prompt action, citing supply-chain pressures such as higher grain costs and limited in‑state storage. One industry witness said an anticipated tariff scenario could raise organic grain costs by roughly $84 per ton, translating into monthly feed-cost increases on the order of $1,200–$1,400 for some farms.

The committee members asked several implementation questions and discussed options for a committee bill to carry forward the task force's recommendations; potential policy steps mentioned included creating a baseline TIER allocation, increasing caps on existing loan or grant programs, and targeted bond proposals. The task force did not propose specific appropriations in committee; the report is intended to inform future legislative action and funding decisions.