"We applaud the president's leadership in calling for more restrained spending on dairy subsidy programs while managing for better results, investing in efforts to safeguard America's food supply and providing full funding for the Women, Infants and Children program, which serves the nutritional requirements of our neediest citizens," said IDFA sr. v.p. Chip Kunde.

IDFA noted that under the budget payments made through commodity programs would be reduced by 5%, including payments under the recently renewed Milk Income Loss Contract program. IDFA says the proposal also improves budgetary restraint in the operation of the Dairy Price Support Program and directs USDA to purchase surplus cheese, butter and powder only when reported prices fall below the support rate.

"The resurrection of the MILC program earlier this year makes the efficient operation of the DPSP even more critical to the health of the dairy sector," stated Kunde.

On the other side of the milk industry, however, few dairy producers like what they see in the Bush plan.

"If the package was voted on today, dairy farmers and farmers across commodity groups would be in serious trouble," Tom Camerlo, chairman of Dairy Farmers of America told Dairy Today

Camerlo noted that it proposes a 5% budget reduction for agriculture when ag programs account for only 1% of the Federal budget. He also calls the 3 cent per hundredweight tax on milk production "very troubling."