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With no new farm bill, NY dairies at risk, Farm Bureau warns

Posted 10/1/12

The New York Farm Bureau is warning that without a new federal Farm Bill approved by Congress, the primary safety net for dairies known as the Milk Income Loss Contract (MILC) Program is no longer in …

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With no new farm bill, NY dairies at risk, Farm Bureau warns

Posted

The New York Farm Bureau is warning that without a new federal Farm Bill approved by Congress, the primary safety net for dairies known as the Milk Income Loss Contract (MILC) Program is no longer in effect.

And without a program in place, consumers might end up paying twice as much for milk at the food market.

NYFB said it has worked closely with the New York congressional delegation, including Reps. Chris Gibson and Bill Owens, who successfully helped pass a bipartisan bill out of the House Agriculture Committee, but action in the full House has been delayed by House leadership.

The most recent Farm Bill expired Saturday, and this is of crucial concern for dairy farmers who are immediately impacted, the NY Farm Bureau said in a statement.

The Milk Income Loss Contract (MILC) Program was part of the law.

This expiration has the potential to hurt every dairy farmer, but it will especially hit the smallest of farmers the hardest, according to the Farm Bureau. Their MILC checks help them in difficult times when milk prices fall below a certain level.

The House of Representatives allowed the 2008 Farm Bill to expire on September 30 and delayed passage of the 2012 Farm Bill that would transition to a new safety net.

The new margin insurance program would give dairy farmers a level of certainty to know help is available for those who choose to take part in the program.

There are already significant factors, such a rising feed prices, that are making survivability an uncertain thing for some dairy farmers, and with no safety net program in place, farmers are concerned.

Milk prices are also significantly lower. In August, the average dairy farmer received $18.30 per hundredweight of milk, which is $5.20 less than they received just one year ago. The expiration may leave some farmers with difficult decisions to make like whether to thin their herd or, in some cases, decide if it is even worth it to keep farming.

“New York Farm Bureau has lobbied hard for passage of the 2012 Farm Bill with strong support from the New York congressional delegation,” said NYFB President Dean Norton.

“Farmers should not be political pawns. The uncertainty in moving forward not only puts their way of life in jeopardy, but it also threatens the food supply of every citizen,” Norton said.

If something isn’t done by January first, more impacts could be felt far beyond the farm fences, the Farm Bureau asserts.

The federal milk pricing structure will resort back to “permanent law” from the 1940’s. That means fluid milk prices would more than double, forcing consumers to pay twice as much for a gallon of milk than they are today, according the American Farm Bureau Federation. It’s a price few would be willing or capable of paying potentially upsetting the delicate supply and demand of milk, the Farm Bureau dais.

In addition, a number of other Farm Bill programs important to all farmers and the people who buy their products would either be scrapped or underfunded.

The bureau is encouraging a quick solution in the full House when lawmakers return after the November general election.

“This should not be put off for a new Congress to negotiate next year that could result in even more cuts. Hard working New York farm families deserve a Farm Bill now,” the bureau’s statement said.