BELLEFONTE, Pa. — The Professional Dairy Managers of Pennsylvania is lending its support to the Dairy Modernization or Expansion Tax Credit Program (Dairy-MAX) that was recently as Senate Bill 1486 by Sen. Roger A. Madigan, R-23, and House Bill 2604, sponsored by Rep. Art Hershey, R-Chester.
Based on a tax credit of 25 percent of the costs associated with dairy farm modernization or expansion, Dairy-MAX will allow a farm to improve aging facilities and add new technology. Capped at $250,000 per farm, the credits will help offset costs.
Professional Dairy Managers of Pennsylvania President Logan Bower believes Dairy-MAX would be a “tremendous boost” to dairy producers.
Speaking from experience as dairy farmer, Bower said, “For Pennsylvania’s dairy families who are already struggling with very narrow profit margins, investing in expansion and technology is often cost prohibitive.
“The Dairy-MAX tax credit program can provide the incentive for a family farm to make the decision to move forward and invest in the dairy operation, or for the next generation of that family to continue the business and commit to expansion and modernization.”
In introducing the bills, Madigan and Hershey called it “a comprehensive initiative” because its benefits extend far beyond dairy farmers.
It is anticipated that the improved profitability and additional on-farm income will provide in excess of $400 million in returns for the state’s economy and result in the creation of 2,800-3,400 new jobs.
In addition to touching the dairy farmer directly, the increase in milk supply will support the Northeast’s dairy processing infrastructure, and impact the tax payer through new jobs, stronger businesses, better access to locally produced dairy products, a cleaner environment and a return of revenue to the local economy.