For Immediate Release
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KOHL LAUDS MILC PROVISION IN FARM BILL

WASHINGTON, DC - Today, US Senator Herb Kohl (D-WI), Chairman of the Agriculture Appropriations Subcommittee, applauded the conferees for the Farm Bill for extending and strengthening the safety net that protects dairy producers when milk prices fall.  Under the agreement for the Farm Bill, the Milk Income Loss Contract (MILC) program would be extended by five years and the payment rate for dairy farmers would be restored to it original level of 45 percent from its current level of 34 percent.

 

"The end result of these hard-fought negotiations is a better safety net for dairy producers in Wisconsin," Kohl said.  "These changes restore and strengthen the original MILC program that I helped initiate. 

 

Specifically, Senator Kohl cited a new feature known as the "feed cost adjuster," which would factor in feed costs when triggering payments for farmers.

 

"The feed cost adjuster is a way to acknowledge that rising costs and a shaky economy that have become real challenges for dairy farmers," Kohl added.

 

In addition, the bill would increase the per farm cap on eligible production to 2.985 million pounds from 2.4 million pounds.  The increase would allow dairy farms of about 165 cows to be fully covered compared 120 cows under current law.  For Wisconsin, that means about 92% of all dairy operations in the state would be fully covered.

 

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 by more than $400 million since Congress implemented the program.  

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