Federal budget could mean less milk money
US - Dairy farmers like Paul Dalebroux would rather see a fair price for their milk than government subsidies.
8 February 2007
1 minute read
"The general feeling out here is we'd just as soon not have the government payments and give us fair milk prices," the Kewaunee County farmer said Tuesday. "A fair's day wage for a fair day's work."
Payments through Milk Income Loss Contract could be cut by about one-third under the proposed 2008 budget submitted to Congress Monday. The program was developed as a safety net in the early 2000s when the diary industry faced dire prices.
Under the proposed budget, the state's dairy farmers would continue to benefit from the Milk Income Loss Contract program under the proposed budget, but the cash subsidies to offset low prices would be cut by one-third.
Farmers with gross incomes above $200,000 on their federal tax returns would be ineligible to participate in commodity farm programs and annual payments would be capped at $360,000.
Dalebroux, who milks about 60 cows, said with rebounding milk prices that are expected to remain good throughout the year, there may not be many payments to be made this year if the dairy market holds.
Source: The North Western
