May 25, 2007

WASHINGTON, D.C. – U.S. Reps. Kirsten Gillibrand, (D-Greenport, NY) and John R. Randy Kuhl, Jr. (R- Hammondsport, NY), both Members of the Agriculture Committee, lead 43 other Members in sending a bipartisan letter to House Agriculture Committee Chairman Collin Peterson and House Agriculture Livestock, Dairy and Poultry Subcommittee Chairman Leonard Boswell urging the committee to include funding for the Milk Income Loss Contract (MILC) program in the 2007 Farm Bill. The MILC program is not included in the initial draft.

"Without MILC, our dairy farmers will not have the safety net they need when milk prices go too low. The economy and the character of Upstate New York would be changed forever if our small farms can’t survive." said Rep. Gillibrand, "I am committed to working in committee to preserve the MILC program and our New York Dairy Farms."

"Our family dairy farmers are in immediate need of relief from the growing costs associated with high gas prices, high feed prices and increased transportation costs" said Rep. Kuhl. "We have a very serious problem if the MILC program is not reauthorized in the 2007 Farm Bill. Small to medium sized dairy farms define the Northeast dairy industry—and these farmers rely on the MILC program to get them through times of low milk prices. By not acknowledging the program in the initial draft of the 2007 Farm Bill, we are sending the wrong message to our local dairy farmers.

"We can’t just abandon small and medium-sized dairy farmers. Giving up on the MILC program gives up on thousands of dairy families, which should not be acceptable to us as Members of Congress," Kuhl continued. "I am hopeful that we can resolve this crisis on our nation's dairy farms as Farm Bill discussions continue."

The letter, led by Reps. Kirsten Gillibrand and Randy Kuhl along with Peter Welch and Appropriations Chairman David Obey, garnered the support of 45 bipartisan Members of Congress.

Text of the letter is below:

Dear Chairman Peterson and Chairman Boswell:

We are writing to express our strong support for the inclusion of a provision to reauthorize the Milk Income Loss Contract (MILC) Program in the 2007 Farm Bill.

We believe it is imperative that our national policies assist in sustaining productive family dairy farms in all regions of the country. As you are probably aware, many small and medium-sized dairy farmers depend on MILC payments to stay in business when prices are low. When market prices are high, the program is dormant. Commonsense volume limits are placed on the program’s benefits to minimize the cost to taxpayers and assure that benefits are well targeted toward small-and –medium-sized dairy operations.

Despite its cost effectiveness, the MILC program has not been included in the CBO funding baseline for the Farm Bill. We are hopeful these budget constraints can be overcome. It is critical to include the MILC program in the Committee’s bill. By leaving the program out of the mark, we are sending the wrong message to our local dairy farmers, and we urge the committee to reconsider.

All of the dairy programs, not just the milk price support program, contribute to ensuring that a supply of fresh milk is available in all parts of the nation. By not including the MILC program in the mark, the security of the food supply will be jeopardized.

We strongly appreciate your leadership in the original creation of the MILC program, as you know the MILC program is a top priority for dairy farmers. We stand ready to work with you to find a solution to this situation, so that dairy farmers can be assured of a continued safety net during times of low milk prices

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