A program intended to provide financial assistance to cash-strapped New England dairy farmers recently realized its own accounts were less than organized. Since forming in 2010, the Keep Local Farms program has raised around $220,000 for dairy farmers in need, but after a planned audit, the organizers learned they owed almost one third of that amount to Uncle Sam.

Keep Local Farms is an education and contribution program that connects consumers with local dairy farmers and enables those interested in purchasing local foods to support local farms. According to the Boston Globe, New England has lost 66 percent of its dairy farms in the past 30 years due to low milk prices paid to farmers. Through various marketing and fundraising initiatives, the program raises awareness about the economic impact of buying locally produced foods, especially dairy products.

Harvard and the University of Vermont both participated by slightly increasing the price of their single-serve milk, and contributed the proceeds to the program. Boston Medical Center, Ski Vermont, some Ben & Jerry’s scoop shops and others also contributed to the program while others, such as Roche Brothers and Hannaford’s Supermarkets, have displayed signs about the importance of local dairy farms in their stores. The Keep Local Farms website provides a forum where local farmers can share their stories and help people reconnect to local agriculture.

“The goal is to provide New England dairy farmers that are part of Keep Local Farms with semi-annual payments to help stabilize and enhance their income despite fluctuations in milk prices,” reads the project’s Facebook page. Over the past year, 1,370 farmers received at least $100 in assistance from the program.

Unfortunately, the Keep Local Farms program was unknowingly experiencing money problems of its own. After seeking the services of an accounting firm, it was discovered that the organization owed about $63,000 in taxes. Following the discovery, the group is now reorganizing so that the funds will be managed as a nonprofit. It’s also rethinking how the money will be used to help farmers.

Photo credit: USDAgov/Flickr