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Senators Klobuchar, Kohl, Feingold, Clinton Fight for Dairy Farmers

Call for final farm bill to retain Senate MILC provision

March 10, 2008

Washington, D.C. – As Senate and House conferees prepare to negotiate a final Farm Bill, U.S. Senators Amy Klobuchar (D-MN), Herb Kohl (D-WI), Russ Feingold (D-WI) and Hillary Clinton (D-NY) today called on them to include the Senate’s provision regarding the Milk Income Loss Contract (MILC) program in the Farm Bill Final Conference Report. 

In a letter to Senators Tom Harkin (D-IA) and Saxby Chambliss (R-GA), the chairman and ranking member of the Senate Agriculture Committee, Senators Kohl, Klobuchar, Feingold and Clinton urged that the final version of the Farm Bill restore the payment rate of 45 percent and expand the quantity of milk that would make farmers eligible to receive payments to 4.15 million pounds under the program – key elements of the Senate MILC extension. 

“Dairy farming plays a crucial role in the Minnesota economy,” said Klobuchar, a member of the Senate Agriculture Committee, whose state ranks No. 6 nationally in milk production.  “We have more than 5,000 family dairy farms in our state, and they need a Farm Bill that works for them.”

“Since its inception six years ago, MILC has provided a meaningful safety net for small and mid-sized dairy farmers who suffer great losses when milk prices drop,” Kohl said.  “The Senate version of the Farm Bill restores and updates the MILC program to help farmers adjust to changes in the dairy farm industry.  For the sake of protecting the vitality of our rural families and communities, I strongly urge the conferees to adopt the Senate MILC provisions in conference.”

“The Senate did the right thing by restoring the MILC program’s 45 percent reimbursement rate for dairy producers and keeping the program targeted toward small and medium farms,” Feingold said.  “Congress has an important role to play in supporting rural America, including dairy producers who contribute so much to our country.  As the Senate and the House craft a final Farm Bill, they should retain the Senate MILC provision to ensure thousands of family farmers in Wisconsin remain competitive as they face a changing economy.”

“The MILC program is extremely important to dairy farmers in New York State and throughout the country. As costs for feed and energy have shot up, the financial burden on our small farmers has grown exponentially,” said Senator Clinton. “The MILC program will help ease financial pressures by serving as a safety net that will allow our farmers to weather periods when market prices are low.”

These changes would assist producers of all sizes in every state and will also protect small farms from future slumps in milk prices, as specified in the letter.  Senator Kohl helped establish the MILC program in 2002 to end regional fighting over federal milk pricing policies as an alternative to the Northeast Dairy Compact.  Wisconsin dairy producers have benefited more than $400 million since Congress implemented the program. 

The final version of the Farm Bill is expected to be voted on in the House and Senate, before going to the President’s desk to be signed into law.

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