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FOR IMMEDIATE RELEASE: February 3, 2005

SCHUMER BACKS BILL TO SUPPORT DAIRY FARMERS

Current MILC Program Set to Expire; Bipartisan Proposal Would Improve Benefits and Extend for Two Years

While Schumer Vows To Keep Fighting for Regional Dairy Pacts, MILC Would Continue Protection from Low Prices for New York’s Dairy Farmers

US Senator Charles E Schumer announced today that he is co-sponsoring Senate legislation to extend the Milk Income Loss Contract (MILC) program, a measure that guarantees price protection for dairy farmers. Currently the MILC program is slated to expire on September 30, 2005, but the proposal would extended this relief for New York’s dairy farmers for additional two years.

“New York’s dairy farms are crucial to its rural communities, and our dairy farmers deserve a helping hand in tough times,” Schumer said. When it comes to the milk market, there are various conditions we simply cannot control. We can, however, help farmers weather the terrible financial risks caused by these roller coaster prices. I will continue to fight for real dairy pacts, but we must also ensure farmers continue to get the protection they need.”

The MILC program provides a safety net for dairy farmers, protecting them from wildly fluctuating milk prices. Introduced in the 2002 Farm Bill, the MILC program has helped dairy farms to survive dangerously low prices by providing over $186 million in benefits to New York farmers.. The current proposal, led by Senators Patrick Leahy (D-VT) and Norm Coleman (R-MN), would double the annual production cap to 4.8 million pounds.

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.

Schumer has led the fight for New York’s dairy farmers and will continue to push for legislation that would guarantee farmers fair prices for their milk if they participated in regional marketing areas that would act like dairy compacts. Last year, Senator Schumer with Senator Specter, Representative Reynolds, and Representative McHugh introduced the National Dairy Equity Act (NDEA). The NDEA could bring $53 million more to New York dairy farmers than they would receive under the current MILC program.

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