Connecticut Dairy Farmers may see Relief
DAIRY
New London Day
Jeanne Amy
Boston University Washington News Service
10/01/09
WASHINGTON – Members of the Congressional Dairy Farmer Caucus met withAgriculture Secretary Tom Vilsack on Thursday in the wake of congressional negotiators’ approval a day earlier of $290 million in direct payments to dairy farmers and $60 million in indirect support.
The money, which House and Senate conferees inserted into the department’s appropriations bill for the new year, is intended to aid ailing dairy farmers across the country through the Milk Income Loss Contract (MILC) federal subsidy program.
The subsidies go to dairy farmers when the price of milk falls below a value that can be adjusted month-to-month for variations in feed costs.
U.S. Rep. Joe Courtney (D- 2nd District), a co-chairman of the recently revived caucus, said at a press conference following the caucus’s meeting with Vilsack that Connecticut dairy farmers need help immediately.
“It’s as bad as anyone can remember,” Courtney said. “Every day dairy farmers are getting up and going to work and losing money.”
In addition to the $290 million set aside for direct payments, the Agriculture Department will buy $60 million worth of surplus dairy products, which would go to food banks and similar programs.
The dairy industry has also taken a hit from imports in the past year, Courtney said.
Most of the 151 dairy farms in Connecticut are small, Courtney said. The subsidy program is intended to help smaller farms.
“There was an immediate short-term cash-flow problem, [and] an allocation of the new money towards the MILC subsidy program is the most effective way to get help out quickly,” he said.
The Agriculture Department will determine how the direct payments will be divided among the states. No breakdown of funds is available yet.
Many large dairy-producing states such as California, New Mexico and Wisconsin also seek support for their dairy farmers. A majority of the 88-member caucus supports the subsidy program, Courtney said.
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