Wisconsin Dairy Task Force Proposing Changes To Loans, Education In Dairy Industry

Wisconsin's Dairy Task Force recently passed two proposals aimed at shoring up the state's dairy industry, which is losing hundreds of farms each year. We talk to the director of the task force about why loans to farmers and more funding for education and research are considered so important. Nine subcommittees presented their findings at the meeting, and two brought forward proposals to boost farmers and stimulate innovation in the industry. On a vote, both proposals passed. The first proposal would create a new loan guarantee program to ensure farmers and dairy producers can take out loans without fear of financial ruin. The program would draw on existing agricultural loan programs that guarantee set dollar amounts or percentages through the Wisconsin Housing and Economic Development, or WHEDA. Some proposed changes include bumping the percentage WHEDA and the lending institutions guarantee from 50 to 90 percent and increasing the pool of money available in case a dairy producer defaults on loans (proponents say the rate of default on guaranteed loans is low).