New MILC Program Narrowly Passes Out of Senate Committee
On October 19, by a vote of 11-9, the Senate Agriculture Committee passed a budget reconciliation proposal that included a new Milk Income Loss Contract (MILC) program. The original MILC program expired on September 30, 2005. IDFA opposes the costly and divisive subsidy program.
During the debate, Senator Mike Crapo (R-ID) led a bipartisan push that nearly removed the new MILC program from the proposal. Senators Max Baucus (D-MT), Dick Lugar (R-IN), Pat Roberts (R-KS), Ken Salazar (D-CO) and Craig Thomas (R-WY) joined in voting to remove the controversial $998 million program from the final package, because funding for the new MILC program was carved out of other farm, conservation and agriculture research programs.
"IDFA applauds these senators for taking a stand against a new MILC program," said IDFA Senior Vice President Chip Kunde. "At a time when Congress is trying to reduce mandatory federal spending, the discussion of any new subsidy programs, especially one that was intended to expire, should be left to the next Farm Bill."
The Senate Agriculture Committee's budget reconciliation proposal which cuts $3 billion in agricultural spending is part an overall effort by Congress to cut $34.7 billion in mandatory federal spending over the next five years. The House Agriculture Committee has not yet acted on its budget reconciliation proposal, but there is opposition among House leaders to any new dairy subsidy program. Once a House version is approved, Congress must then resolve the differences between the House and Senate versions to enact a final budget-cutting bill.
For background information on MILC, click here.