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MILC Program Becomes Political Football for Presidential Campaigns The Milk Income Loss Contract direct subsidy program (MILC) has become a hot topic in the presidential campaign, with both Republicans and Democrats looking to shore up support in key dairy states less than a month before Election Day. In an intense war of words during the past two weeks, the campaigns of President George W. Bush and Senator John F. Kerry have declared that their candidates support extending MILC for two more years; each side believes the midwestern dairy farmer vote will help its candidate win on November 2.In the meantime, Congress — the government branch that is in charge of any changes to MILC — has recessed until mid-November so that its members can go home to campaign for themselves and their presidential candidate of choice. Legislation authorizing the MILC extension was inserted into an appropriations bill for the Departments of Veterans Affairs and Housing and Urban Development; that bill is awaiting action by the full Senate. (For background, members can click here.) Some lawmakers opposed the move, noting that the extension would cost $2.4 billion and that MILC does not need to be reauthorized now since the direct payment program doesn't expire until September 30, 2005. In fact, six prominent senators from western states have written to the leadership of the Senate Appropriations Committee to formally protest the insertion of this "contentious amendment." To read that October 6 letter, click here. IDFA Senior Vice President Chip Kunde noted that "the dairy industry would benefit from a more unified, market-oriented approach to dairy policy, rather than continuing another layer of government subsidies." The MILC controversy began last month, when media reports started circulating that an April presentation given by a staff member of the U.S. Department of Agriculture (USDA) suggested that the Bush Administration might eliminate MILC or institute some type of "milk tax" on dairy farmers due to budgetary concerns. "If that's George Bush's plan, he should come clean and tell Wisconsin's farmers the truth now — not wait until they go to the polls in November," said Senator Kerry in a statement. The office of USDA Secretary Ann Veneman immediately refuted the claim, saying "the administration has no plans to impose a milk tax or cut support prices in any year. Period." Secretary Veneman noted that the staff economist who gave the presentation had no authority to set policy for the department or the administration. She also stated that Kerry was playing politics in order to distract attention away from his Senate support of the Northeast Dairy Compact. In his October 7 address to a Wisconsin audience, President Bush stated his support for extending MILC for two more years, saying that he will work with Congress to reauthorize the program "so Wisconsin dairy farmers and dairy farmers all across the country can count on the support they need." The president's remarks were delivered right before a new television ad launched in Wisconsin from the Democratic National Committee that alleges that the Bush Administration's "secret plan" to cut MILC would cost the state's farmers millions of dollars.
Posted October 12, 2004
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