Wisconsin Ag Connection - Kohl & Feingold Call for MILC Provision in Next Farm Bill

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Kohl & Feingold Call for MILC Provision in Next Farm Bill
Wisconsin Ag Connection - 03/11/2008

A group of farm state Senators, including Wisconsin's Herb Kohl and Russ Feingold, are calling on the Farm Bill conference committee to include a provision that would continue the Milk Income Loss Contract program in the panel's final report.

In a letter to Senators Tom Harkin and Saxby Chambliss, the chairman and ranking member of the Senate Agriculture Committee, the lawmakers urged that the final version of the Farm Bill restore the payment rate of 45 percent and expand the quantity of milk that would make farmers eligible to receive payments to 4.15 million pounds under the program – key elements of the Senate MILC extension.

"Since its inception six years ago, MILC has provided a meaningful safety net for small and mid-sized dairy farmers who suffer great losses when milk prices drop," Kohl said. "The Senate version of the Farm Bill restores and updates the MILC program to help farmers adjust to changes in the dairy farm industry. For the sake of protecting the vitality of our rural families and communities, I strongly urge the conferees to adopt the Senate MILC provisions in conference."

Feingold added that the Senate did the right thing by restoring the MILC program's 45 percent reimbursement rate for dairy producers and keeping the program targeted toward small and medium farms.

"Congress has an important role to play in supporting rural America, including dairy producers who contribute so much to our country," Feingold said. "As the Senate and the House craft a final Farm Bill, they should retain the Senate MILC provision to ensure thousands of family farmers in Wisconsin remain competitive as they face a changing economy."

These changes would assist producers of all sizes in every state and will also protect small farms from future slumps in milk prices, as specified in the letter. Senator Kohl helped establish the MILC program in 2002 to end regional fighting over federal milk pricing policies as an alternative to the Northeast Dairy Compact. Wisconsin dairy producers have benefited more than $400 million since Congress implemented the program.

The final version of the Farm Bill is expected to be voted on in the House and Senate, before going to the President's desk to be signed into law.

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