In The Wake Of Double Digit Drops In Milk Prices, Schumer Launches Campaign To Save And Expand MILC Program That Sent Upstate NY Dairy Farmers $38 Mil
In The Wake Of Double Digit Drops In Milk Prices, Schumer Launches Campaign To Save And Expand MILC Program That Sent Upstate NY Dairy Farmers $38 Million Since April
Today, U.S. Senator Charles E. Schumer revealed that so far this year upstate New York dairy farmers have received nearly $38 million in payments received under the Milk Income Loss Contract (MILC) program, despite a 12 percent drop in milk prices across upstate New York. Last year, Schumer successfully lobbied to extend the program until August of 2007. However, as negotiations on the 2007 Farm Bill begin to heat up, the program is in danger of being cut again. The MILC program provides subsidies to dairy farmers when the price of milk drops below $16.94. Since November 2005, the average price of milk in upstate New York has plummeted from $17.81 to $15.68. As part of his campaign, Schumer is pushing language to double the annual production cap, which could mean millions more for upstate New York dairy farmers.
"The MILC program is the lifeline for thousands of upstate New York dairy farmers," Schumer said. "For many, it is the difference between staying afloat or sinking because of sudden drops in milk prices. The good news is we can help farmers endure the financial risks caused by unstable prices. Year after year, I am proud to lead the fight to protect this vital program and I am proud to lead that charge yet again."
Introduced in the 2002 Farm Bill, the MILC program has helped dairy farms to survive artificially low prices by providing over $180 million in benefits to New York farmers. The current MILC program provides payments to eligible dairy farmers when the price of Boston Class I milk falls below $16.94 per hundredweight (cwt). Payments are issued for up to a maximum of 2.4 million pounds of milk per dairy operation per year.
However, over the last year, the price of milk has dropped to unsustainable levels all across upstate New York. Since November of last year, when the price of milk reached $17.81 per hundredweight, the price has dropped 12 percent to $15.68 per hundredweight. Thankfully, the MILC program has been available to provide upstate New York dairy farmers critical funding to weather these cuts.
According to the Department of Agriculture and Markets, the state's dairy farmers 6,700 dairy farmers are weathering one of the toughest years on record. Schumer said a combination of record low dairy prices and rising energy costs are the primary culprits. Every year, 200 to 300 farms across the state go under.
Schumer today released county-by-county data detailing how much money farmers in each county have received from the MILC program since prices began to decline and how steep the drop has been in each region:
Since the MILC program was restarted April 1, 2006, Capital Region dairy farmers have received an estimated $3,897,843 because of the MILC program, helping them to weather an 11.5 percent drop in milk prices. Dairy farmers in the Capital Region produced 1.267 billion pounds of milk in 2005.
Since the MILC program was restarted April 1, 2006, Central New York dairy farmers have received an estimated $4,762,265 because of the MILC program, helping them to weather a 12.5 percent drop in milk prices. Dairy farmers in Central New York produced 1.499 billion pounds of milk in 2005.
Since the MILC program was restarted April 1, 2006, Rochester-Finger Lakes dairy farmers have received an estimated $6,632,530 because of the MILC program, helping them to weather a 12.6 percent drop in milk prices. Dairy farmers in the Rochester-Finger Lakes Region produced 2.09 billion pounds of milk in 2005.
Since the MILC program was restarted April 1, 2006, Hudson Valley dairy farmers have received an estimated $1,004,255 because of the MILC program, helping them to weather a 12.3 percent drop in milk prices. Dairy farmers in the Hudson Valley produced 316 million pounds of milk in 2005.
Since the MILC program was restarted April 1, 2006, North Country dairy farmers have received an estimated $8,278,745 because of the MILC program, helping them to weather a 12.6 percent drop in milk prices. Dairy farmers in the North Country produced 2.605 billion pounds of milk in 2005.
Since the MILC program was restarted April 1, 2006, Southern Tier dairy farmers have received an estimated $4,571,583 because of the MILC program, helping them to weather an 12.5 percent drop in milk prices. Dairy farmers in the Southern Tier produced 1.438 billion pounds of milk in 2005.
Since the MILC program was restarted April 1, 2006, Western New York dairy farmers have received an estimated $8,477,371 because of the MILC program, helping them to weather a 12.7 percent drop in milk prices. Dairy farmers in Western New York produced 2.668 billion pounds of milk in 2005.
http://schumer.senate.gov/SchumerWebsite/pressroom/record.cfm?id=266836&&year=2006&