The US Department of Agriculture (USDA) has announced plans to purchase an estimated 11m pounds of cheese from private inventories to help farmers who have seen their revenue drop 35% over the past two years.

The cheese, which is valued at $20m, will go towards food banks and pantries in the US, while reducing a cheese surplus that is at its highest level in 30 years.

Agriculture secretary Tom Vilsack said: "We understand that the nation's dairy producers are experiencing challenges due to market conditions and that food banks continue to see strong demand for assistance.

"This commodity purchase is part of a robust, comprehensive safety net that will help reduce a cheese surplus that is at a 30-year high, while at the same time moving a high-protein food to the tables of those most in need.

"USDA will continue to look for ways within its authorities to tackle food insecurity and provide for added stability in the marketplace."

Margin Protection Program

The USDA also announced that the deadline for dairy producers to enrol in the Margin Protection Program (MPP) for Dairy has been extended to 16 December 2016, instead of 30 September.

According to the USDA, the scheme is a voluntary dairy safety net programme which provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the producer.

On 4 August, the USDA announced approximately $11.2m in financial assistance to US dairy producers enrolled in MPP-Dairy, the largest payment since the programme began in 2014.

The USDA received requests from Congress, the National Farmers Union, the American Farm Bureau and the National Milk Producers Federation to make an immediate dairy purchase.

"By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America's dairy operations remain successful," said Vilsack.

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US dairy farmers get assistance to protect margin