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October 7, 2009
Congressman Higgins Votes for Agriculture Bill Providing Relief to Dairy Farmers
Legislation May Provide $2.4 Million for Western New York Farmers
 
Today, Congressman Brian Higgins (NY-27), a member of the Dairy Farmer Caucus, voted to approve Conference Report on H.R. 2997 - Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act 2010.  This legislation provides $350 million in assistance to the nation’s dairy farmers which could translate into $2.4 million for Chautauqua and Erie Counties.

“Dairy farmers nationwide have suffered tremendously as milk prices have collapsed and milk production costs exceed the selling price,” said Congressman Higgins.  “The dairy business, an $88 million industry in Chautauqua and Erie Counties and it is vital to our local and national economy for us to find solutions that benefit dairy farmers and consumers alike.”

The Conference Report implements key investments in public health, food safety, rural communities, and conservation.  In particular, it designates $350 million in aid to the dairy industry, of which $290 million will be in direct payments to farmers.  Utilizing the same formula that dictates the federal Milk Income Loss Contract Program, this legislation potentially could provide $1.5 million and $922,000 for Chautauqua and Erie Counties respectively.

Last week, members of the House of Representatives’ Dairy Farmer Caucus met with U.S. Secretary of Agriculture Thomas Vilsack to advocate on behalf of the Dairy industry.  The Dairy Farmer Caucus was recently reestablished to advocate on behalf of the needs of our dairy farmers, revaluate the dairy support system and build a consensus for a long-term solution that will work better for our dairy farmers. 

Below are other steps the Congressman has taken on this issue:
  • Congressman Higgins and other members of the Dairy Farmer Caucus sent a letter requesting the Sander Amendment be included in the Agriculture Appropriations bill.  The amendment which provides $350 million in relief for dairy farmers was recently included in the legislation - $60 million will be used to purchase cheese and other dairy products and distribute these products to food banks and other nutrition programs for the needy.  The additional $290 million will be utilized to make MILC payments to financially hard-pressed dairy producers.
  • In July Congressman Higgins and other members of the House sent a letter to federal Budget Director Peter Orszag asking him to support the Dairy Product Price Support Program (DPPSP).  The Administration agreed to raise the price paid for nonfat dry milk from $0.80 per pound to $0.92 per pound, the price paid for cheddar blocks from $1.13 per pound to $1.31 per pound, and the price of cheddar barrels from $1.10 per pound to $1.28 per pound. 
  • The Congressman is a cosponsor the Dairy Relief and Market Stabilization Act, introduced by Rep. Scott Murphy.  This bill would increase payments under the Milk Income Loss Contract (MILC) program.  MILC is a subsidy program that pays farmers 45% of the difference between the market price of milk and $16.94.  This legislation, critical to dairy farmers in the Northeast, would temporarily increase that percentage to 90%.  
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