Bushra Griffith
The US government has a long history of involvement in the dairy industry, with policies that have resulted in billions of pounds of surplus cheese. This began in 1949, when the Agricultural Act gave the Commodity Credit Corporation the authority to purchase dairy products from farmers. In 1977, President Jimmy Carter signed the Food and Agriculture Act, which artificially raised the price of dairy products and led to a 500-million-pound stockpile of government cheese. The government continues to subsidize the dairy industry, which has resulted in overproduction and a current surplus of 1.4 billion pounds of cheese. The government has attempted to address this issue by distributing cheese through feeding programs such as school lunches and the Temporary Emergency Food Assistance Program, which provides food to the elderly and low-income individuals. However, there have been concerns about the health implications of providing high-calorie and high-fat cheese to these groups. While the government has considered alternative solutions, such as selling or giving away the cheese, there are challenges due to the potential impact on the commercial market and the need to support farmers by maintaining certain prices for their products.
| Characteristics | Values |
|---|---|
| Do farmers get paid by the government for surplus cheese? | Yes, the government purchases the surplus cheese from farmers to keep them afloat and to stabilize prices. |
| Reason for the surplus | The government subsidized the dairy industry, leading to overproduction. |
| Year of government intervention | 1977 |
| President at the time | Jimmy Carter |
| Amount spent on subsidies | $2 billion |
| Year the government purchased cheese | 1981 |
| President at the time | Ronald Reagan |
| Amount of cheese purchased | 560 million pounds |
| Distribution | The cheese was given to the needy, and also distributed as aid to foreign countries. |
| Storage | The cheese was stored in "Missouri cheese caves", underground warehouses in Missouri, and other warehouses across 35 states. |
| Current government cheese stockpile | 1.4 billion pounds |
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What You'll Learn
- The US government purchased surplus cheese from farmers to keep them afloat
- The government stored the cheese in Missouri cheese caves and hundreds of warehouses across 35 states
- The government distributed cheese to the needy and welfare organisations
- The government sold cheese at discounted prices to foreign countries
- The government's intervention in the market led to consumers paying higher prices
The US government purchased surplus cheese from farmers to keep them afloat
The US government has a long history of purchasing surplus cheese from farmers. This practice began in 1949, when the Agricultural Act of 1949 gave the Commodity Credit Corporation (CCC) the authority to purchase dairy products like cheese from farmers. The CCC, created during the Great Depression, aimed to stabilize prices and support farmers.
In the 1970s, the US faced a dairy shortage and 30% inflation on dairy products. In response, President Jimmy Carter's administration implemented a subsidy policy, investing $2 billion in the dairy industry from 1977 to 1981. This intervention led to an oversupply of milk, resulting in the government purchasing excess milk and processing it into cheese, butter, and dehydrated milk powder. By the early 1980s, the government owned over 500 million pounds of cheese, stored in warehouses across 35 states.
The cheese surplus became a contentious issue during the Reagan administration. In 1981, Reagan authorized the release of 560 million pounds of cheese from CCC stockpiles to be distributed to the needy. However, the administration faced criticism for its handling of the surplus, including the storage costs and the impact on commercial cheese sales. The controversy was heightened when Agriculture Secretary John R. Block publicly presented a block of mouldy cheese, emphasizing the government's challenge in managing the deteriorating surplus.
The US government's purchase of surplus cheese from farmers aimed to stabilize the dairy market and support farmers facing financial difficulties. However, it also led to challenges in managing and distributing the excess cheese without disrupting the commercial market. The surplus cheese was eventually distributed through programs like the Temporary Emergency Food Assistance Program, providing aid to low-income individuals and organizations serving them.
Today, the US government continues to store significant amounts of surplus cheese, with reports of 1.4 billion pounds of cheese in \"Missouri cheese caves." While the government's role in the dairy industry has provided stability and support for farmers, there are ongoing debates about the effectiveness of these programs and the potential for overproduction and environmental concerns.
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The government stored the cheese in Missouri cheese caves and hundreds of warehouses across 35 states
The US government has a long history of involvement in the dairy industry, dating back to the Agricultural Act of 1949, which gave the Commodity Credit Corporation (CCC) the authority to purchase dairy products like cheese from farmers. During the 1970s, the US faced a dairy shortage and a 30% inflation rate on dairy products. In response, President Jimmy Carter signed the Food and Agriculture Act of 1977, which provided $2 billion to the dairy industry over four years, leading to overproduction.
The government purchased the excess milk that dairy farmers couldn't sell and began processing it into cheese, butter, and dehydrated milk powder. This cheese was stored in "Missouri cheese caves" and hundreds of warehouses across 35 states, creating a strategic Federal food reserve. The Missouri cheese caves are underground warehouses for storing and ageing cheese, kept at a constant temperature of 36 degrees Fahrenheit.
The Federal cheese stockpile continued to grow, and by the time Ronald Reagan signed the Agriculture and Food Act of 1981, it equalled more than 2 lbs (1 kg) per capita in the US. The government began distributing the cheese through the Temporary Emergency Food Assistance Program to recipients of welfare, food stamps, and Social Security. Despite these efforts, the cheese surplus remained an issue, with government officials struggling to find a market for the deteriorating product.
The government's intervention in the dairy industry had unintended consequences, including the overproduction of dairy and the maintenance of "cheese caves," which may have been better spent elsewhere. This situation highlights the complex dynamics between government support, industry interests, and the potential for overproduction and waste.
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The government distributed cheese to the needy and welfare organisations
The US government has a long history of involvement in the dairy industry, dating back to World War II. Government cheese, a commodity cheese, was controlled by the US federal government from World War II until the early 1980s. It was a byproduct of maintaining artificially high milk prices through dairy industry subsidies, which led to a surplus of milk that was converted into cheese, butter, and powdered milk. This surplus was stored in over 150 warehouses across 35 states, creating a strategic Federal food reserve.
In the early 1980s, the US government faced a surplus of cheese, with over 500 million pounds of cheese in storage. This cheese had been produced with federal funds and was intended to stabilise farm incomes and support dairy farmers. However, the government struggled to find a market for it, and much of it was mouldy and deteriorating. As a result, President Ronald Reagan authorised the distribution of this cheese to needy Americans through the Temporary Emergency Food Assistance Program. Reagan stated that the cheese would be "distributed free to the needy by nonprofit organizations."
The cheese was provided to welfare beneficiaries, Food Stamp recipients, and the elderly receiving Social Security, as well as to food banks and churches. It was also distributed as aid to foreign countries. California was the first state to receive the surplus cheese, with a delivery of three million pounds. The cheese was provided in monthly instalments, in unsliced block form, with generic packaging and labelling.
While some were grateful for the cheese, others disliked how it advertised their socioeconomic status. The cheese had a distinctive pale orange colour and a pungent smell, and its texture was described as weird. It was often used for making macaroni and cheese or grilled cheese sandwiches.
Today, the US government continues to store large quantities of cheese, with reports of 1.4 billion pounds of surplus cheese in "Missouri cheese caves" as recently as 2022. The government has also continued to purchase cheese to support dairy farmers and address food insecurity, with plans announced in 2016 to purchase eleven million pounds of cheese worth $20 million to distribute to food banks and pantries.
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The government sold cheese at discounted prices to foreign countries
The US government has a long history of involvement in the dairy industry, dating back to the Agricultural Act of 1949, which gave the Commodity Credit Corporation (CCC) the authority to purchase dairy products like cheese from farmers. During the 1970s, the US faced a dairy shortage and a 30% inflation rate on dairy products. In response, the government intervened, causing prices to fall drastically. In 1977, President Jimmy Carter decided to subsidize the dairy industry, providing $2 billion to the industry over four years. This led to dairy farmers producing as much milk as they could to take advantage of government support, which in turn resulted in a massive cheese surplus.
By the early 1980s, the US government owned over 500 million pounds of cheese, which was stored in warehouses across the country. The cheese began to deteriorate, and the government struggled to find a market for it. In 1981, President Ronald Reagan signed the Agriculture and Food Act, authorizing the release of 560 million pounds of cheese from the CCC to be distributed for free to those in need. The government also sold cheese at discounted prices to foreign countries.
The sale of cheese at discounted prices to foreign countries was part of the government's efforts to address the cheese surplus and avoid waste. It was also a way to support the dairy industry and ensure farmers received a certain price for their products. However, some critics argue that the government's intervention in the dairy market, including the purchase and distribution of cheese, can confuse price signals and have unintended consequences on the industry and consumers.
The US government's strategy of selling cheese at discounted prices to foreign countries was likely influenced by a combination of domestic and international factors. Domestically, there was pressure to address the cheese surplus and prevent waste, especially as the cheese began to deteriorate. There was also a recognition that simply selling the cheese on the domestic market would directly compete with commercial cheese producers and potentially harm the industry. By selling the cheese abroad at discounted prices, the government could find a use for the surplus cheese without directly impacting the domestic market.
Internationally, the US government may have identified foreign markets where there was a demand for cheese at lower prices. By offering discounted cheese, the US could potentially gain a foothold in these markets and support American dairy farmers by creating new export opportunities. Additionally, selling cheese abroad could be framed as a form of aid or goodwill, contributing to broader foreign policy goals.
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The government's intervention in the market led to consumers paying higher prices
In the 1970s, the US government intervened in the dairy market to address a national shortage of dairy products and 30% inflation on dairy products. The government's intervention resulted in prices falling drastically. In 1977, President Jimmy Carter signed the Food and Agriculture Act, which artificially raised the price of dairy products and led to a 500-million-pound stockpile of "government cheese". This act included a new subsidy policy that provided $2 billion to the dairy industry over four years. While this was beneficial to dairy farmers, it also incentivized overproduction.
The government purchased the excess milk that farmers could not sell and converted it into cheese, butter, and powdered milk. By the early 1980s, the government owned over 500 million pounds of cheese, which was stored in warehouses across the country. The cheese had a longer shelf life than other dairy products, but the government struggled to find a market for it. The government's purchase and removal of dairy products from the commercial market decreased supply, which drove up prices for consumers.
The government attempted to distribute the cheese through various feeding programs, such as school lunches, and by providing it to the needy through the Temporary Emergency Food Assistance Program. However, there were concerns about the nutritional content of cheese and its potential impact on recipients of these programs. The government also faced criticism for its handling of the surplus cheese situation, as it had previously pledged to reduce the federal food stamp program.
The government's intervention in the dairy market, through price supports and subsidies, led to consumers paying higher prices for dairy products. The government's purchase of dairy products reduced the supply available in the commercial market, which drove up prices. Additionally, the government's subsidy program incentivized overproduction by dairy farmers, contributing to the surplus cheese issue. The government's attempts to distribute the cheese through feeding programs and assistance initiatives faced challenges due to the nutritional concerns and the potential impact on existing markets.
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Frequently asked questions
Yes, the US government has a history of buying surplus cheese from farmers to keep them afloat and to maintain a stable price for dairy products.
The US government has, in the past, intervened in the dairy market by subsidizing the dairy industry, which led to overproduction. The government then purchased the excess milk and converted it into cheese, butter, and milk powder.
The government has distributed the cheese through feeding programs such as school lunches, and to the elderly and low-income individuals. The cheese has also been sold at discounted prices or given as aid to foreign countries.
The government buys surplus cheese to support farmers and stabilize food prices. Additionally, cheese has a longer shelf life than other dairy products, making it a suitable item for the government's strategic food reserve.
