State Rolls Out New Loan Terms For Dairy Industry

The state has rolled out new loan terms for dairy farmers and processors as dozens of Wisconsin dairy farms could be without customers next week.

Grassland Dairy Products announced earlier this month the farms would be without a milk buyer beginning May 1 due to lost contracts with Canadian buyers.

“This is a difficult time for many of Wisconsin’s dairy farm families due to Canada’s dairy trade policies, and we’re going to do everything we can to help them,” Gov. Scott Walker said in a statement announcing the new loan terms Tuesday.

The changes to increase the amount the state guarantees for loans taken by dairy businesses are aimed at helping get better repayment and collateral terms for farmers and higher guarantees for producers.

“A lot of clients just in general are really struggling with cash flow and the depressed prices right now, and the market conditions and just being able to cash flow month-to-month and bill-to-bill,” said Lori Teigen, dairy industry executive at AgStar Financial Services, a farm credit association.

Brian Schimming, chief operating officer of the Wisconsin Housing and Economic Development Authority, said the state is providing needed support to the industry.

“This way we can jump into this gap that’s there now, ensure some financial stability for these farmers and the processors and the storage folks, and try to avert this crisis that otherwise we will feel very directly by next Monday,” he said.

The program take effect immediately. The loans will be available through August 1.