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House passes FY2010 Ag Appropriations bill

The House passed the FY2010 Ag Appropriations bill on Wednesday.  The measure includes $350 million in financial aid for dairy producers. The plan is for $60 million to be used to purchase dairy products for use in federal food programs and $290 million to be paid directly to dairy producers as determined by USDA. Many contend the easiest and fastest way to get those dollars to producers is through the Milk Income Loss Contract (MILC) program, make the payments retroactive to encompass those who may have maxed-out by now and then increase the percentage of the payment issuing checks for the difference from what has been paid already.

That idea has run into opposition mainly from western dairy producers who contend the plan favors smaller dairy producers because payments are capped at the production of about 220 cows. Senator Barbara Boxer of California has put a “hold” on the bill in the Senate because of that discrepancy but Wisconsin Congressman Steve Kagen, a member of the House Agriculture Committee, says the $60 million purchase of dairy products is designed to help the larger dairy producers. “If 20 percent of the nation’s milk production is being produced by the very large dairy farms then 20 percent of the $350 million ought to go to purchasing cheese. If you do the math it’s 17 percent that’s going to purchasing cheese to support that price and thereby help the large producers.” Kagen notes the Ag Secretary has already taken actions that include buying cheese, taking nonfat dry milk off the market and the Dairy Export Incentive Program.

The biggest advantage to utilizing the MILC program is that the mechanism is already in place to get the money out quickly; Kagen says staff members of USDA have told him the checks could be out between mid-November and mid-December. “To paraphrase the words of my dairy farm constituents, we need help now!”

AUDIO: Congressman Steve Kagen comments on the dairy plan 2:55