Wisconsin Ag Connection - Senate Committee Approves 30 Day Extension of MILC

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Senate Committee Approves 30 Day Extension of MILC
Wisconsin Ag Connection - 03/23/2007

The Senate Appropriations Committee approved a one-month extension of the Milk Income Loss Contract program. On Thursday, U.S. Senator Herb Kohl, who serves on the panel, said the amendment was design to stretch the MILC program's expiration from August to September 2007 in order to coincide with the duration of other farm programs that will be considered as part of the new Farm Bill this year. The provision also builds the cost of the dairy program into the baseline budget for the next Farm Bill.

The MILC is a countercyclical program that serves as a safety net to small and mid-size dairy farmers when milk prices plummet. Kohl says the program provided $414 million to Wisconsin dairy farmers when milk prices dropped to record lows since its implementation in 2002.

"We're encouraged that the Committee refused to allow the MILC program to terminate before it receives a full and fair debate as part of the new Farm Bill," Kohl said, who is one of the co-sponsors of the bill. "We'll continue to work to build a bipartisan and regionally balanced alliance to support MILC and the invaluable safety net it provides for our dairy farmers and rural economies."

Just one week earlier, the House Appropriations committee decided to include an extension provision for the Milk Income Loss Contract Program in its emergency agricultural disaster assistance legislation. That measure aims to extend the program by 13 months.

Kohl says the USDA's Farm Bill proposal calls for continuation of MILC, but with a reduced level of support over time. The Milwaukee Democrat says he will be working to maintain a safety net for family-sized dairy farms as the debate over the Farm Bill unfolds.

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