Schumer: Bill Set To Pass Congress This Month Will Provide Nearly $300 Million In Emergency Funds For Nation's Struggling Dairy Farmers; Schumer Lays Out Plan To Secure NY Its Fair Share

Press Release

Date: Oct. 1, 2009

$290 Million Will Be Given To Sec Of Agriculture To Distribute In Direct Payments -Guidelines For Distribution Have Not Yet Been Set

Schumer Pushes Plan To Have Money Distributed To Farmers Immediately -Would Provide NYS With Almost $45 Million, Benefiting Small Farms

Schumer: Critical Funding Is Coming Down The Pipe, But We Must Make Sure New York Gets Its Fair

U.S. Senator Charles E. Schumer today announced that he is urging Secretary of Agriculture Tom Vilsack to make sure that New York dairy farmers get a fair share of $290 million Congress will be providing to the United States Department of Agriculture (USDA) to address the dairy crisis. The funding comes from an amendment authored by Senator Bernie Sanders (D-VT) and co-sponsored by Schumer and Senator Kristen Gillibrand (D-NY) that was included in the combined House and Senate Agriculture Appropriations bill. The amendment provides the funding to the USDA, but gives Sec. Vilsack discretion on how to distribute it. Today Schumer urged Vilsack to use the money to provide direct payments in a way that would mirror what farmers would see if the MILC reimbursement rates were increased to 90%. Such a move would benefit New York's many smaller farms, and provide a quick way to get an estimated $45 million into the pockets of New York's dairy farmers.

The amendment will provide $350 million to the USDA to address the dairy crisis. Sixty million dollars will go towards bolstering commodity prices and the remaining $290 million must be given out as direct payments to dairy farmers. It is the $290 million that Schumer is asking the Secretary of Agriculture to distribute in a manner similar to how MILC payments are delivered. Under Schumer's plan, farmers will see the same amount of money as they would if the reimbursement rate was temporarily raised to 90%. There is enough money to keep the rates at the 90% level for slightly less than two months. This method of distributing funds would be particularly beneficial to New York, which is characterized by smaller farms that are particularly helped by the MILC program.

"Rarely in history have dairy farmers been saddled with such low prices for such a long period of time." said Schumer, "If it's distributed right, this $350 million will make a big difference for our dairy farmers. That's why I am calling on Secretary Vilsack to distribute it in such a way that New York, which is dominated by small farms, will get its fair share. Not only are dairy farmers the backbone of New York's rural economy, they provide the entire country a service by supplying wholesome, safe, domestically produced milk, and we must do everything we can to help them survive this crisis."

With these actions, USDA can provide a necessary lifeline to dairy producers while utilizing the infrastructure of the MILC program to more efficiently deliver these payments. Importantly, this would have all the benefits of raising the MILC reimbursement rate to 90%, without having to wait for further congressional action to change the MILC program.

BREAK IN TRANSCRIPT


Source
arrow_upward