Wisconsin Ag Connection - House Okays Ag Spending Bill; Includes $350 Million Dairy Relief

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House Okays Ag Spending Bill; Includes $350 Million Dairy Relief
Wisconsin Ag Connection - 10/08/2009

In just over a month, struggling dairy farmers across the nation should see a little bit of relief from the federal government to help make ends meet. The House of Representatives on Wednesday approved a $121 billion funding bill for the U.S. Agriculture Department and the Food and Drug Administration for the new fiscal year that began October 1. The measure--which passed on a vote of 263-163--includes $350 million in aid for the dairy industry. It now heads to the Senate for consideration.

According to Wisconsin Congressman Dr. Steve Kagen, who sits on the House Ag Committee, about $290 million will be distributed to dairy farmers under a process to be determined by the USDA. The remaining $60 million is to be allocated to buy cheese and other dairy products to reduce surpluses that have drive down farmer-income.

The Appleton Democrat says U.S. Agriculture Secretary Tom Vilsack will now have to decide how the $290 million for dairy farmers should be delivered.

"There are still details to be worked out on how the money will be dispersed, but it is my hope that it will be delivered through the Milk Income Loss Contract program," Kagen told agriculture reporters in a conference call on Wednesday. "Regardless, we are hoping to get these checks in the mail by mid-November to mid-December."

Kagen played an active role in shaping the Conference Report on the Agriculture Appropriations Bill. The $350 million dairy assistance package was negotiated last week by U.S. Senator Herb Kohl and Congressman Dave Obey, who both play key rolls on various spending committees.

So far, USDA's Farm Service Agency has made more than $143 million in MILC payments to Wisconsin farmers.