Low milk prices, high fuel and feed costs, labor shortages and flooding have had a "devastating economic impact" on New York's milk production, the Senate said. On Wednesday almost 5,100 checks averaging $5,000 each were mailed out.

"The dairy industry serves as the backbone of the upstate economy and the economic impacts of our $3 billion industry ripples through a large number of local economies across New York," said John Lincoln, President of the New York Farm Bureau. "This investment in the industry will go a long way in helping to financially strengthen diary farms in a time of extremely low commodity prices and very high energy and feed prices."

The amount of relief to each farmer is based on the amount of milk produced in 2006, up to 4.8 million pounds. The maximum relief one farmer could receive is $16,000, according to the state Department of Agriculture and Markets.

The Senate pushed the $30 million program during budget negotiations earlier in the year.

"When we began the budget process, dairy farmers made it clear that they were in need of real action right away," said Sen. Joseph Griffo, R-Rome.

Source: Press & Sun-Bulletin