Bangor Daily News reports a committee in Maine plans to provide aid to dairy farmers who currently sell milk below cost.

The Legislature’s Agriculture, Conservation and Forestry Committee voted Tuesday to find the money in the state’s supplemental budget to help large and small dairy farmers. The money will supplement the price farmers receive for milk. The set blend price for milk in December was $16.91 per hundredweight while the cost to produce the same amount is $20.70. Grain and fuel price increases have raised costs for dairy farmers who lose $3.79 per hundredweight.

Even with Maine’s Dairy Stabilization Tier Program dairy farmers in the state aren’t able to cover their production expenses. The aid would help keep the state’s dairies in business, Maine has already lost 24 farms in 2010.

Source: Bangor Daily News