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Millions in PA dairy farmer aid proposed to cut insurance costs

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Millions in PA dairy farmer aid proposed to cut insurance costs


This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for our north-central Pa. newsletter, Talk of the Town, at spotlightpa.org/newsletters/talkofthetown.

BELLEFONTE — As part of his administration’s efforts to bolster the agriculture industry through state spending, Democratic Gov. Josh Shapiro wants to use millions of dollars to connect more Pennsylvania farmers to a federal dairy program.

The governor’s budget pitch includes $5.6 million to create a state subsidy that would lessen sign-up costs for the federal Dairy Margin Coverage Protection Program, which gives farmers direct payments to help them deal with volatile milk and feed prices.

The dairy industry requires a large amount of initial capital investment, and there’s no guarantee that market prices will stay the same each month, so making a profit is difficult, said Jayne Sebright, executive director of Pennsylvania’s Center for Dairy Excellence. The center operates within the state Department of Agriculture.

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William Thiele, a sixth-generation dairy farmer in Butler County, equated the price fluctuations to riding a roller coaster. He signed up for the federal program — which works like an insurance plan — to curb some risks.

Funded by the federal Farm Bill in 2018, the program pays farmers when the difference between the national milk price and the average feed cost falls below a certain threshold.

Coverage levels range from $4 to $9.50 per 100 pounds of milk. The most basic protection is free except for a $100 administrative fee required for all participants.

Yearly premiums can range between $118 and $7,000, depending on various factors — like the coverage level and what percentage of coverage participants want.

In such a shifting market, costs deter participation, Sebright said.

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“It’s a tight business we’re in,” Ed Hartman, a dairy farmer with operations in Berks and Lancaster Counties, told Spotlight PA. “You have to watch every dollar.”

Some farmers choose not to participate because they don’t want government support, Thiele said. Others might not know it exists, he added.

Pennsylvania has 4,940 dairy farms, according to state data. Of those, 1,778 are enrolled in the federal program, which made $102 million in payments statewide last year.

Christopher Allen Wolf, an agricultural economics professor at Cornell University, said participation in the federal program offers farmers, especially smaller ones, a safe way to reduce risks.

“Our hope is that by sharing the costs, more dairy farmers will take advantage of the federal program,” Shannon Powers, a Pennsylvania Department of Agriculture spokesperson, told Spotlight PA.

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Minnesota incentivizes participation through its Dairy Assistance, Investment, Relief Initiative. The state’s $8 million program, launched in 2019, made payments to operations that produced less than 16 million pounds of milk and enrolled for five years of federal coverage.

Before DAIRI, low milk prices and high feed costs had the dairy industry in crisis, said Paul Hugunin, a division director at the Minnesota Department of Agriculture.

The state subsidy, Hugunin said, was a way to give farmers direct cash with long-term benefits. Since 2020, Minnesota has received more than $245 million in federal dairy margin coverage payments.

“We got a heck of a deal for $8 million,” Hugunin said.

State Reps. Emily Kinkead (D., Allegheny) and Marci Mustello (R., Butler) are using Minnesota as a model as they craft legislation that would enable the governor’s pitch.

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“There’s no sense in trying to reinvent the wheel,” Kinkead told Spotlight PA.

The 2018 Farm Bill expired in December, but after Congress couldn’t agree on an updated version, lawmakers extended the provisions through the rest of 2024. Any legislation creating a subsidy in Pennsylvania would apply to future dairy margin coverage cycles, Mustello said.

Agriculture investments have received bipartisan support in the General Assembly, but total spending faces an uphill legislative battle. Republicans, including those who control the state Senate, say the governor’s overall proposed budget is fiscally irresponsible.

State Sen. Elder Vogel (R., Beaver), who chairs his chamber’s Agriculture and Rural Affairs Committee, said the proposed agriculture spending, $599 million total, is “a pretty fair budget.” Vogel, also a dairy farmer, told Spotlight PA he supports efforts to stabilize his industry amid fluctuating prices.

Along with the proposed subsidy program, Shapiro wants to use a portion of the $5.6 million to create a specialist position in the state Department of Agriculture that would advocate for the industry and its farmers.

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State Rep. Dan Moul (R., Adams) previously told Spotlight PA he wasn’t convinced all of the proposed investments were necessary, including the subsidy program, a $10.3 million grant program for innovation, and additional staffing for the agriculture department. He’d rather see money go toward expanding farmers’ access to broadband.

SUPPORT THIS JOURNALISM and help us reinvigorate local news in north-central Pennsylvania at spotlightpa.org/donate/statecollege. Spotlight PA is funded by foundations and readers like you who are committed to accountability and public-service journalism that gets results.



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Rabb tops fundraising in Pennsylvania primary, but Stanford leads in cash

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Rabb tops fundraising in Pennsylvania primary, but Stanford leads in cash


What questions do you have about the 2026 elections? What major issues do you want candidates to address? Let us know.

Pennsylvania state Rep. Chris Rabb, D-Philadelphia, surged to the front of the Democratic primary fundraising race in the latest quarter, nearly doubling his closest rivals, despite a recent campaign finance scandal that drained his coffers.

Rabb, who identifies as the progressive candidate in the race, brought in nearly $385,000 between Jan. 1 and March 31.

That number was around twice as much as both of his primary competitors — state Sen. Sharif Street, who previously led the field in fundraising, with $199,000, and Dr. Ala Stanford, with $211,000, in the same period of time.

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While Rabb led in new money raised, Stanford entered April with the strongest overall financial position, partly thanks to a $250,000 loan she gave her campaign last year. Her campaign reported about $450,000 cash on hand, compared to Rabb’s $236,000. Street ended the quarter with $263,000.

Rabb’s total was especially notable because it came after his team disclosed that his former treasurer allegedly made more than $160,000 in unauthorized withdrawals from the campaign account last year.



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As Tech Groups Predict Huge Pennsylvania Data-Center Growth, Critics Say Some Bills Would Reduce Local Control – Inside Climate News

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As Tech Groups Predict Huge Pennsylvania Data-Center Growth, Critics Say Some Bills Would Reduce Local Control – Inside Climate News


As local tech groups predict that Pennsylvania will outpace its region for data-center growth in the next 10 years, another organization warned that some legislative proposals in play this session would weaken municipalities’ ability to say no. 

“Local authority remains one of the few meaningful tools communities have to push back against large-scale data center and AI development,” Data & Society, a nonprofit that studies the social implications of data, automation and AI, said in a new policy brief. “State government should support, not override, local decision-making, especially with infrastructural decisions as consequential as this.” 

It named several bills in the Pennsylvania legislature that it said would reduce local authority over siting decisions for major industrial facilities, centralizing that power within the state.

The bills include HB 502, a Democrat-led measure that’s part of Gov. Josh Shapiro’s “Lightning Plan” to speed the permitting of energy projects. The bill would set up a statewide board to make decisions on whether to approve large-scale energy projects, which data centers will need. 

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Among the other bills the group flagged are two Republican-led measures: SB 939, which would create a standardized “sandbox” to write statewide regulation for the industry, and SB 991, which would provide faster permits for data-center developers who commit to meet or exceed federal environmental standards.  

Pennsylvania communities are “vastly different,” Data & Society said in a statement. “This group of bills erases that diversity and assumes that the same solution will work for all.”

The bills remain in committee.

Meanwhile, an industry report released in late March by the Pittsburgh Technology Council and the Philadelphia Alliance for Capital and Technologies projected Pennsylvania will see data-center capacity growth of more than 4,000 percent in the next decade. The report, written by Mangum Economics, says that growth will outpace any other place on the regional electric grid PJM Interconnection, which serves 12 other states and Washington, D.C.

Neither Mangum Economics nor the Data Center Coalition, an industry group, responded to requests for comment.

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The report said Pennsylvania is especially attractive to data-center developers because it is courting data centers and has major attractions for the electricity-hungry industry. The state is the biggest exporter of electricity in the nation’s largest electric grid. And it’s the second-largest producer of natural gas, a major way that developers plan to power the new hyperscale complexes.

The state also has manufacturing that can supply the new infrastructure needed by the AI industry, the report said.

“While some states excel in hosting data centers, others in energy production, and others in advanced manufacturing, Pennsylvania is on track to uniquely possess all three advantages at scale,” said the report.

It predicted that by 2036, the data center industry will support 19,400 jobs in manufacturing, energy and other sectors. The capacity of new data centers—the maximum amount of electricity they need—is expected to exceed 7,196 megawatts by 2036, up from 186 megawatts now. 

More than 50 data centers are currently planned or under construction in Pennsylvania, according to Data Center Proposal Tracker, a website that monitors planned or actual data center construction throughout the U.S. 

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Environmentalists say the expected surge in data center construction will worsen climate change by stimulating the production of natural gas. There’s also growing bipartisan concern about the impact on local water supplies and residential electric bills, which have already risen in anticipation of big new data center demand.

Some communities are pushing back. In February, for instance, commissioners of Montour County in central Pennsylvania rejected a plan by Talen Energy and Amazon to rezone land to build a data center.

Quentin Good, an analyst at Frontier Group, which does research for environmental groups including PennEnvironment, said the industry hasn’t yet provided evidence that there will be enough demand to justify all the data centers in the works. There is a danger of over-investing, especially in additional energy infrastructure, he said.

“That’s going to cost a lot of money,” he said. “But we might not even need it all.”

Good said the prediction of 4,000 percent growth in Pennsylvania’s data center capacity ignores state or local regulation that could have a significant effect. “The report doesn’t consider any of those competing factors,” he said.

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In the legislature, state Sen. Katie Muth said she will introduce a bill that would place a three-year moratorium on data center development to give local governments time to evaluate its impacts on their communities.

Muth, a Democrat from the Philadelphia suburbs, said she didn’t expect any co-sponsors before the bill was published but now has four, including two Republicans. She said the unexpected support is probably because some members are hearing complaints from their constituents about the impact on their electric bills.

“People are rightfully upset about that,” she said. “I think that might be the reason why this has moved—public outrage.”

About This Story

Perhaps you noticed: This story, like all the news we publish, is free to read. That’s because Inside Climate News is a 501c3 nonprofit organization. We do not charge a subscription fee, lock our news behind a paywall, or clutter our website with ads. We make our news on climate and the environment freely available to you and anyone who wants it.

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Pa. House sends budget proposal to Senate earlier than it has in nearly a decade

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Pa. House sends budget proposal to Senate earlier than it has in nearly a decade


The state House sent a proposed $53.3 billion budget for the coming fiscal year to the Senate on Tuesday — the earliest it has initially passed a spending plan in nearly a decade.

The plan passed this week by the Democratic-controlled House has virtually no chance of making it through the Republican-led Senate and to Gov. Josh Shapiro’s desk as-is. But lawmakers, who have failed to pass a budget on time in 14 of the past 22 years, are at least moving the budget process forward earlier than usual.

“I’m actually going to praise what I believe is the intent of the majority party at this time,” House Minority Leader Jesse Topper, R-Bedford County, said in remarks on the House floor.

While Topper ultimately voted against the proposed spending plan, he said, “I think the intent of the majority party is to show that there is a path for an on-time budget this year, and I appreciate that.”

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Last year’s budget impasse dragged on for 135 days, stopping billions of dollars in state funding from flowing to schools, counties and nonprofits across Pennsylvania.

“What this shows is the Senate, as well as taxpayers and voters at home, know what the House is doing and what the House can pass. Now it’s up to the Senate to show us what they can pass,” House Appropriations Chairman Jordan Harris, D-Philadelphia, said in a phone interview.

The budget passed the House on a 107-94 vote, with support from all Democrats and five Republicans.

It was the earliest the House had initially approved a budget since April 4, 2017, when the then-GOP-controlled chamber advanced a $31.5 billion plan on a 114-84 vote. Lawmakers would ultimately agree on a $32 billion plan. Last year, the House first passed a proposed budget in mid-July — two weeks after the state’s constitutionally mandated June 30 deadline to adopt a spending plan. Lawmakers wouldn’t reach a final budget agreement until Nov. 12.

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The plan approved this week in the House mirrors the record $53.3 billion budget proposed by Shapiro in February.

The governor’s plan proposed using nearly $4.6 billion, or more than half, of the state’s largest reserve fund to balance. It also factors in receiving new revenue from legalizing marijuana for adult recreational use and taxing and regulating video gaming terminals that have become ubiquitous at bars, convenience stores, fraternal clubs and elsewhere.

The Legislature has yet to reach agreements on those two measures.

“We continue to have profound concerns about the level of spending in the budget proposed by Gov. Shapiro and passed by the House,” Senate President Pro Tempore Kim Ward, Senate Majority Leader Joe Pittman and Senate Appropriations Chairman Scott Martin said in a joint statement.

“Moving a budget plan forward is an important step in the budget process, but much work remains to reach a final agreement which respects taxpayers both now and in the future,” the senators added. “We will continue to fight for a more fiscally responsible spending plan.”

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The Senate is back in session Monday.



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