The US Department of Agriculture (USDA) will support dairy producers by buying around 11 million pounds of cheese at $20m through its Margin Protection Program (MPP).
The announcement from USDA is aimed at reducing a cheese surplus which is at its highest level in three decades.
USDA says that it will distribute the cheese to families in need through its nutrition assistance programs.
Dairy producers are expected to be helped by the USDA purchase as their revenues dropped by 35% in the last two years.
Agriculture Secretary Tom Vilsack said: "We understand that the nation's dairy producers are experiencing challenges due to market conditions and that food banks continue to see strong demand for assistance.”
Vilsack also reiterated that the purchase is part of a safety net that will not only reduce the 30-year high cheese surplus but also move the high-protein food to those in need.
Vilsack also added: “USDA will continue to look for ways within its authorities to tackle food insecurity and provide for added stability in the marketplace."
The purchase announcement comes following requests to the USDA from Congress, the American Farm Bureau, National Milk Producers Federation and the National Farmers Union.
USDA says that the dairy prices could increase during the rest the year.
It said that factors like low market prices globally, surplus milk supplies and inventories and reduced demand have adversely affected the business of dairy producers.
The department recently offered MPP-enrolled dairy producers a financial assistance of $11.2m.
