MILC Program Survives Key Test

Amendment To Kill Program Fails
Agriculture Panel Then OKs MILC Extension

WASHINGTON (Wednesday, Oct. 19) -- The Senate Agriculture Committee just after Noon Wednesday defeated an amendment to delete the MILC Program extension.  The vote on the amendment by Sen. Mike Crapo (R-Idaho) to kill the MILC extension provisions was defeated in a surprisingly strong vote of 6 to14.  Sen. Patrick Leahy (D-Vt.), a senior member of the committee and the panel’s former chairman, had led efforts to renew the MILC program, which expired Sept. 30.  The MILC extension was included in the Agriculture Committee’s budget reconciliation package.  Leahy also successfully pushed to eliminate Food Stamp cuts that had been included in the earlier version of the package.  The Agriculture Committee at 12:13 p.m. then passed the reconciliation bill, including the MILC Program extension, in a vote of 11 to 9.  Below is Leahy’s opening statement from today’s markup session, followed by the announcement yesterday -- and Leahy reaction -- to restoration of the Food Stamp cuts.

Reaction Of Sen. Patrick Leahy
To Agriculture Committee Passage
Of Legislation To Extend The MILC Program

“The outcome of this vote was hard-won and greatly encouraging.  We have several more steps to go in restoring this lifeline for hard-working dairy farmers, but this is the most important step.”

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Opening Statement Of Senator Patrick Leahy (D-Vt.),
Budget Reconciliation Markup/MILC Program Extension
Senate Committee On Agriculture, Nutrition, And Forestry
Wednesday, October 19, 2005

Mr. Chairman, you had a difficult task -- balancing the farm interests of various regions while protecting a safety net for low-income families on food stamps. 

I believe you have done a good job.  As I, and others, pointed out months ago, you successfully worked to reduce the level of the cuts imposed on this Committee.

I intend to vote for final passage of your mark unless destructive language is added today.

Are these cuts still too high for many of our farmers?  Yes.

Is the timing bad because of Hurricanes Katrina and Rita and other disasters?  Yes.  But is this the Chairman’s fault?  No.

I know the Chairman would agree, most of us would rather not have any agriculture cuts this year.

However, if this Committee does not meet its target, then our title would be wide open for objectionable amendments on the Senate floor including food stamp cuts.

I want to urge a more positive approach to set the stage for the next farm bill.  As we approach the next farm bill, I hope we can become more bipartisan, instead of less.  After the December World Trade Organization meetings we may be faced with massive cuts, over time, in many of our important support programs.

I hope we can continue to work on policy in this committee, instead of politics, and focus on helping each other while addressing our own special situations.   

Mr. Chairman your mark includes an extension of the MILC program, but it cuts the benefits by around 25 percent – while other commodity programs are cut around 2.5 percent.  

While 2.5 percent is ten times less than the MILC cuts, I would have preferred no commodity cuts for farmers in Kansas, Iowa, Mississippi, Missouri, North Dakota, or any other state.

However, I do not intend to offer an amendment to eliminate that 25 percent cut for dairy farmers because I think the Chairman did about the best he could under the circumstances.

Smaller dairy farmers throughout this nation depend on this program.  I know that the huge operators – with thousands of dairy cows – don’t like the MILC safety net because it only provides counter-cyclical support on the first 125 cows-worth of production. 

Everyone knows that that is why Members from states with huge dairy operations often oppose MILC. 

I have tried to be very supportive of programs which do not directly benefit Vermont – and intend to vote to help farmers in other regions -- just as I hope that others will join me in supporting dairy farmers in Vermont, and throughout the nation.  Just like corn, wheat, soybean, sugar, cotton and you-name-it farmers – dairy farmers work hard for a living and should not be left out.

Mr. Chairman, I want discuss food stamps for a moment.  Thank you very much for not including any cuts in the food stamp program. 

That program provides a vital safety net to low-income families just as commodity programs provide a vital safety net to hardworking farmers and ranchers. 

I am disappointed in the significant conservation cuts – but appreciate that these were reductions, not terminations.

I also realize that under our potential WTO obligations this Committee may work together in the future to fashion even stronger and more widely available conservation programs. 

In conclusion, I want to note that whichever party is in control during reconciliation has to make cuts that they otherwise would not want to make – we all know that. 

However, I believe the Chairman has done a good job in creating a balanced bill.

 

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News Update On Wednesday’s MILC Program Showdown –

·         Food Stamp cuts eliminated from draft Senate bill
·         Leahy and others build support for MILC program extension

(TUESDAY, Oct. 18) -- The question of extending the MILC program continues to dominate negotiations and press coverage in advance of Wednesday’s Senate Agriculture Committee showdown vote on the panel’s part of the budget reconciliation package.  After two more weeks of negotiations, Chairman Chambliss Tuesday morning announced that he has DROPPED the controversial Food Stamp cuts ($574 million, over five years) from the chairman’s mark.  Senator Leahy and others had urged elimination of the Food Stamp cuts.

In its counterpart reconciliation process, the House is considering cuts as large as $5 billion, over five years, in the Food Stamp program, though the extent of the cuts are not likely to be known until later this week.  The House also does not include an extension of the MILC program.

Leahy, a senior member and former chairman of the Agriculture Committee, has been working with others on the panel in fighting for the MILC program’s extension.  The MILC program extension – from now until 2007 when the next Farm Bill is to be completed – has been scored at $998 million over that time period.

“As usual, it’s the Perils of Pauline again when it comes to fairness for hard-working dairy farmers,” said Leahy.  “Renewing the MILC program will not be easy, but we have done all we can to strengthen our hand for this showdown vote, and beyond.”

Restoration of the Food Stamp cuts was accomplished by shifting advance payments in commodity programs.

When the Agriculture Committee meets on Wednesday to vote on the package (10 a.m., Room 328-A of the Russell Senate Office Building), Sen. Mike Crapo (R-Idaho) now is expected to offer an amendment to strike the MILC program extension.

“Misguided fiscal and policy choices have led us to this point, but we should do all we can to avoid compounding those bad decisions by taking food away from those who are struggling the most in our society,” said Leahy.  “I commend Chairman Chambliss for making the extra effort to remedy the Food Stamp cuts in this bill.”  Leahy has long championed the hunger and nutrition programs under the Agriculture Committee’s jurisdiction.

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