MILC Renewal Legislation Passes Senate Appropriations Committee

The Milk Income Loss Contract (MILC) payments program will expire in 12 months unless it is extended by new legislation. While milk prices have been strong enough not to trigger the MILC payments since April 2004, at current futures prices, the MILC payments will begin again on milk produced in December 2004.
For estimates of MILC payments next year, go to: http://cpdmp.cornell.edu/

Legislation has been introduced in the U.S. Senate and the U.S. House to extend the MILC program through 2007. In the House, the bill is HR 3990. In the Senate the bill is S 2609. The current status of both bills may be checked at: http://thomas.loc.gov/

An amendment to S 2609 was approved by the senate appropriations committee that brings the senate bill closer to the house version.
See:http://kohl.senate.gov/~kohl/press/04/09/2004921B37.html

Under the Senate bill, the cap would remain at 2.4 million pounds of milk, (the same as the house bill), but the deficiency payments would rise because the target price that triggers MILC payment would increase from $13.69 Class I base price to 13.85.

In order to become law, both the full House and Senate must still pass this legislation and the president must sign it.