Wisconsin Ag Connection - Latest Farm Bill Proposal Contains MILC, Meat Inspection Program

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Latest Farm Bill Proposal Contains MILC, Meat Inspection Program
Wisconsin Ag Connection - 10/26/2007

The Senate Agriculture Committee has agreed on a new version of the federal farm bill on Thursday that contains provisions that would help Wisconsin dairy farmers remain competitive and permits state-inspected meat processors to expand their markets across state lines. According to U.S. Senator Herb Kohl, who sits on the panel, the measure authorizes federal farm programs for the next five years, such as the Milk Income Loss Contract program. MILC is the counter-cyclical safety net for small and mid-size dairy farmers when milk prices plummet.

Beginning in October 2008, the Farm Bill restores the payment rate for MILC to 45-percent of the difference between market price and target price. It also strengthens the safety net by covering up to 4.15 million pounds of milk per farm, which is equivalent to the average production of a Wisconsin dairy herd of 220 cows.

"I'm glad we were able to include provisions in the Farm Bill that will help Wisconsin farmers and rural businesses," the Milwaukee Democrat said. "The billions of dollars that dairy farming contributes to our state's economy each year is inherently linked to the success of farm families and rural communities across Wisconsin."

Since its inception, the MILC program has provided over $517 million to Wisconsin dairy farmers.

Meanwhile, the bill also includes a landmark change to allow interstate shipment of meat and poultry products from state-inspected facilities. Kohl says Wisconsin is home to more state-inspected plants than any other state in the nation. He sponsored the legislation to overturn the ban on interstate shipment of state-inspected meat, which will allow small, specialty processors access to a broader market.

"I have traveled across the state and know firsthand that our people produce some incredible products," Kohl says. "Our livestock producers and processors deserve more marketing options--and this bill achieves that in a way that actually strengthens food safety."

The bill also includes stricter timelines for USDA to consider and render decisions on proposed amendments to federal milk marketing orders; authorizes specific research for cranberry production and development assistance for value-added dairy initiatives; expands the fresh fruits and vegetable program, which makes these products available to school children; and clarifies that local sourcing is an option under the federal school lunch program.

The House Agriculture Committee approved its version of the farm bill in July. Both drafts will now head to the Senate floor, followed by a Senate-House conference committee to work out the differences of the two versions before heading to President Bush's desk.