Legislation To Renew
MILC Program Is Unveiled
And Nears Its First Crucial Test

WASHINGTON (Wednesday, Oct. 5) -- Legislation to renew the recently expired MILC program, which helps dairy farmers when prices slide, was unveiled Wednesday in the U.S. Senate. 

The renewal legislation is part of a proposed budget reconciliation package for the Senate Agriculture Committee, released Wednesday by the panel’s Republican chairman.  Sen. Patrick Leahy, a senior member of the Agriculture Committee and the panel’s former chairman, led negotiations in the committee to win renewal of the MILC program in the committee bill.  This is the first crucial stage for the legislation, which still needs to clear several additional difficult steps to become law.  The Senate Agriculture Committee meets Thursday morning to vote on its part of the package.

The Milk Income Loss Contract program was initiated through the efforts of Vermont’s Congressional Delegation – Leahy, Sen. Jim Jeffords, and Rep. Bernie Sanders.  The program has brought more than $45 million to Vermont’s dairy farmers since its enactment in the 2002 Farm Bill.

The MILC renewal provision sets aside $998 million to extend the program through Sept. 30, 2007 (when a new Farm Bill is due to be considered by Congress), and it would maintain the existing “strike price” that has been used to trigger payments under the program, with a 20 percent reduction in benefits.

“We still have miles to go to the finish line, but now we’ve gotten a MILC renewal plan onto the track,” said Senator Leahy.  “We know how much Vermont’s dairy farmers depend on this lifeline, and we know there are more obstacles ahead of us, but we will continue to do all we can to renew it.”

Senator Jeffords said:  “I am pleased that the MILC program extension is headed for inclusion in the budget reconciliation package.  The MILC program offers assistance only when times are tough, and it’s been very effective and efficient.  Senator Leahy deserves much credit for his work on behalf of Vermont farmers.  There are going to be some very tough choices in the reconciliation process, but I am pleased that the MILC extension will be included.”

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