Senate Thursday Night Passes Extension Of MILC Program That Protects Dairy Farmers When Prices Plummet

WASHINGTON (Thursday, Nov. 3) – The U.S. Senate Thursday night passed a three-year extension of the Milk Income Loss Contract (MILC) program, which protects dairy farmers when prices plummet.  The extension was included in a budget package that cleared the Senate Thursday night and now will go to conference with a counterpart House package, which is not expected to include a MILC program extension.

Sen. Patrick Leahy (D-Vt.), a senior member of the Senate Agriculture Committee and the panel’s former chairman, led efforts in the bill to renew the MILC program, which expired Sept. 30.  Sen. Jim Jeffords (I-Vt.) and Rep. Bernie Sanders (I-Vt.) strongly support the extension.  Leahy, Jeffords and Sanders had led in creating the program --  which is modeled on the former Northeast Dairy Compact – in the 2002 farm bill.  Since then the MILC program has brought more than $45 million in countercyclical payments to Vermont’s dairy farmers. 

Leahy worked to include the MILC extension in the Agriculture Committee’s part of the budget reconciliation package.  The MILC program extension – from now until 2007 and the next farm bill – ensures $998 million for the program until then. 

A threatened amendment to strike the MILC extension never materialized Thursday on the Senate Floor after Leahy and his allies made clear they had the votes to defeat such an amendment.

“So far, so good, but we still have miles to go and several more obstacles ahead,” said Leahy.  “Our goal is to put this lifeline back in place so it is there the next time farmers need it.”

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