Ask the Joint Committee on Revenue to Support an Increase in the Dairy Tax Credit
On June 27, the Joint Committee on Revenue will be hear HB 2616 – An Act relative to the dairy tax credit.
This bill would increase the amount of the dairy tax credit pool from $4 million to $8 million. This pool provides a tax credit to dairy farmers when the cost of producing milk is greater than the price paid for milk.
Milk prices are determined through a Federal Marketing Order, and are not controlled in any manner by dairy farmers.
The tax credit is available for use only when the milk prices fall below the cost of production.
Providing this tax credit helps dairy farms remain financially viable when milk prices are low and/or production costs are high.
No farm will last long if it is losing money regularly. Dairy farmers have experienced long periods of time when the cost of producing milk exceeds the price paid for it. Massachusetts has seen many dairy farms go out of business in the last few decades because of this. If Massachusetts residents are going to continue to enjoy the open space, scenic views and fresh milk that these farms provide, we will need to provide modest support such as this tax credit. This bill helps to ensure there is enough money in the pool to do so.
Call or email members of the Joint Committee on Revenue today and ask them to support HB 2616.
