October 26, 2007

US Farm Bill boosts payments for dairy industry

The farm bill passed by the Senate Agriculture Committee Thursday (October 25, 2007) would include increased payments for US dairy farmers.

The bill would now include a renewal of the Milk Income Loss Contract programme at higher rates. The programme, known as MILC, pays dairy farmers cash when milk prices fall below certain levels.

When milk prices fall below a baseline level, the federal government pays dairy farmers cash to cover 34 percent of the difference.

The new bill would raise the rate to 45 percent, back to levels a few years earlier.

The bill would also raise the production limit for which a farmer is entitled to the programme to cover more farmers.