The Wisconsin Dairy Council (WDC) has agreed to pay out about $25,000 to farmers who lost more than $300,000 in 2014, which is an average of nearly a month’s worth of payments.WDC is part of the Dairy Farmers of America (DFA), which represents the state’s farmers, and it said that about 10 percent of Wisconsin’s 1.1 million dairy farms were affected by the losses.
The group also says that about 30 percent of the state will owe money to the dairy industry, including more than a quarter of dairy farms.WDI has been negotiating a settlement with dairy farmers, according to a statement issued Wednesday.
WDI is working to reach a settlement that includes compensation to farmers and a reduction in the amount of milk produced each year.
The company said that it would not be in a position to release the details of its negotiations with the dairy farmers.
The Wisconsin Department of Agriculture and Rural Development (DARMD) said the state has more than 1.3 million dairy farmers and that the number is growing.
It said that the dairy business generated $4.2 billion in sales last year and that $2.2 million of that is owed to the WDC.DARMA said in a statement that the payment was made to cover dairy losses caused by the 2013-14 drought.
The state’s dairy industry will pay approximately $25.3 billion in total costs to dairy farmers through the end of 2020, according WDI.