A third of dairy farmers received direct subsidies under a 2017 trade pact, says a Department of Agriculture audit. Milk producers were promised federal aid after cabinet increased imports of tariff-free European cheese.

“This evaluation was unable to determine whether programs mitigated anticipated future growth losses or other anticipated impacts,” said an Evaluation Of The Dairy Farm Investment Program And Dairy Processing Investment Fund. Compensation cost $350 million.

Auditors said about a third of dairy farmers, a total 3,450 of 9,403 nationwide, received subsidies. “Funding levels and high program demand resulted in oversubscription,” it said.