Washington Watch: MILC Legislation Debate Heats Up
A battle is brewing in Congress between milk processors and producers over renewal of the Milk Income Loss Contract (MILC), which provides a government subsidy to farmers. Legislation was introduced in early February that would double the size of the MILC subsidy. The legislation, introduced by Sen. Norm Coleman (R-MN), would extend the program through September 2007 and increase the cap in the subsidy formula to 4.8 million gal per year. Dairy processors are lining up against the measure, noting that it was introduced a day after President Bush called for curbing the federal deficit during his state of the union speech.
A battle is brewing in Congress between milk processors and producers over renewal of the Milk Income Loss Contract (MILC), which provides a government subsidy to farmers. Legislation was introduced in early February that would double the size of the MILC subsidy. The legislation, introduced by Sen. Norm Coleman (R-MN), would extend the program through September 2007 and increase the cap in the subsidy formula to 4.8 million gal per year. Dairy processors are lining up against the measure, noting that it was introduced a day after President Bush called for curbing the federal deficit during his state of the union speech.
"Making MILC bigger won't make it better, but it will make it even costlier," said Chip Kunde, International Dairy Foods Association senior vice president. "At a time when the nation needs to hold the budgetary line, this legislation would pour billions of dollars in new spending into a program that just doesn't work as national dairy policy."