A new study shows that Vermont’s dairy industry brings $2.2 billion in economic activity to the state each year, accounting for more than 70 percent of the state's agricultural sales.
The Milk Matters study issued by the Vermont Dairy Promotion Council, in conjunction with the Agency of Agriculture and Agency of Commerce and Community Development finds that dairy brings about $3 million in cash to the state daily. Of the 134,132 cows on 868 dairy farms in the state, 321.25 million gallons of Vermont milk are sold each year. Jackie Folsom is one of those dairy farmers. “People don’t really understand how important those cows are out in the pasture. When the state can come up with data that shows that the dairy industry brings in $2.2 billion a year into the state, that’s just amazing. It also shows that we support the infrastructure in this state. If it wasn’t for dairy being in this state you wouldn’t have a lot of the extension people. You wouldn’t have a lot of the tractor supply dealers. You wouldn’t have a lot of the feed companies. We are businesses. We are not just farming. Farming is a business. And I think that’s the most important thing that needs to be understood.”
The report shows that 63 percent of the milk produced in New England comes from Vermont. Dairy accounts for 70 percent of Vermont’s agricultural sales. While fluid milk accounts for $400 million in sales, cheese dominates with $650 million. Ice cream and other products account for the remainder. Agrimark Dairy Economist Bob Wellington was on the advisory panel for the report. “We’re talking about several million dollars a day that is brought into the state. And it’s outside money because we make so much cheese that, gosh, I think 90 percent of it is exported outside of Vermont. That means people buy Vermont cheese and they send their money into Vermont to those cheese companies. And so that’s a huge benefit to the state. And most people don’t know that. Some people are even out there saying we don’t need the dairy industry because they don’t know. The whole thing about this report is to give them that information and make sure they understand it.”
Agricultural impact on water quality is a issue in the statehouse and Jackie Folsom believes the report is opening eyes of legislators as to the importance of dairy as an industry. Rural Vermont Executive Director Andrea Stander says while it’s good to see the numbers reflect positively on the dairy industry, she is a bit curious about the timing of the report. “Just looking at the report I don’t think these numbers are any kind of a big surprise to anyone. I think the timing is an indicator that the dairy industry is feeling that it needs to promote itself and that’s all perfectly legitimate. Is it going to have an impact? I think it’s too early to say. There are a lot of issues being discussed and I think the momentum to move forward on addressing, in a much more aggressive way, the water quality issues is already well under way.”
It has been ten years since a similar report has been issued.
Vermont Farm Bureau President Clark Hinsdale notes that while Vermont has a diverse agriculture base, it is also the most dairy dependent state in the nation. “Dairy farming is a bigger percentage of our economy than any other product in any other state. We’re actually facing some pretty significant financial measures in the Legislature. The Governor wants to put a moratorium on sign-ups for our current use program. He wants to reestablish a tax on agricultural buildings and add over a million dollars in taxes to fertilizer. So the farm community feels like this report is very timely to be able to say agriculture is a huge contributor to the economy. Let’s not create policies that will impede the growth of agriculture.”
