It argues these initiatives are critical for keeping US farmers in business.
The ADC said the situation has been made more challenging because the SBA announced the funds for the PPP and EIDL have dried up due to the high demand for these assistance loans.
The impact of COVID-19 means there has been 28% decline in fluid milk demand, which was used to produce cheese, and a 34% decline in demand for nonfat dry milk, which had been used by restaurants and schools. As these businesses and institutions remain closed, so do their market for dairy products, the organization said.
The ADC said farmers have been asked by their milk cooperatives and processors to dispose of milk because there simply is nowhere for it to go.
With milk prices dropping, the farmers who are not forced to dispose of their milk, are paid $5.00-$6.00 less for every hundred pounds of milk they ship, which the ADC said does not cover the costs to produce the milk.
And it argued that, while the USDA recently announced a financial assistance program for farmers, the amount of resources in the program will not come close to break even.
The ADC said Congress needs to replenish funds to SBA relief programs to allow the PPP and EIDL programs to continue providing assistance to small businesses and their employees.