The federal stimulus package may help Wisconsin maintain its competitive edge in the dairy industry, as parts of it are designed to assist dairy farmers throughout the state.

According to Sue Beitlich, president of the Wisconsin Farmers Union, farmers have suffered as the result of the global recession, including a 50 percent drop in the price of milk over the last few months.

To help alleviate the surplus, the government plans to buy the surplus dairy products and donate them to nutrition programs and food banks to feed the hungry.

Although most of the money slated for agriculture will go into similar large-scale projects, spokesperson for the Wisconsin Farm Bureau Casey Langan said the package also addresses four areas expected to help agriculture in general.

One area the government has addressed is the need for farmers to have high-speed Internet, allocating $7.2 billion for getting broadband Internet into rural areas of the United States, including many locations in Wisconsin.

“Rural areas want to be equal with urban counterparts. Farmers need to get on the Internet and have communication with rural companies — it’s something we’ve long embraced,” Beitlich said.

Langan also said agriculture will benefit from the release of tax incentives for renewable energy, particularly for new renewable fields.

Wisconsin is uniquely situated to be a leader in the cellulosic ethanol industry, according to Langan, due to the abundance of switchgrass, corn stock and waste wood left over from the lumbering process and papermaking.

“By helping build this industry we provide farmers with income and the rural economy with jobs and, ultimately, cellulosic ethanol will result in a cleaner environment and it reduces our dependence on imported oil,” Langan said.

Farmers will also benefit from the extension of a bonus depreciation tax, intended to encourage the purchase of farm equipment and put money into farmers’ pockets, Langan added.

Millions of dollars dedicated toward planning reconstruction on the outdated Mississippi River locks and dams system will help move farm products out of the state and throughout the nation more quickly, according to Langan.

The state stimulus package, passed the day after President Barack Obama signed the federal stimulus package into law, includes benefits for Wisconsin’s dairy industry as well.

“There are two parts to the state stimulus plan: meat processing and dairy cooperative tax credits,” Nelson said.

Nelson added the tax credits worked well in the past, leveraging almost $50 million in investments.

Republicans are skeptical of the plan, however, arguing it will do more damage for the state than good through tax increases, according to a statement by the Republican Party of Wisconsin.

According to Beitlich, despite the positive plans for the agriculture industry the president’s budget address last week has initiated reason to worry.

“His proposal is to reduce our deficit in half which means programs will be cut, and I anticipate they will cut programs that will affect farmers,” Beitlich said.