President Bush's proposed 2005-06 budget leaves New York farmers vulnerable because it will take $27 million in milk subsidies away from them, U.S. Sen. Charles Schumer said Wednesday.
While Bush's budget does include plans to extend the Milk Income Lost Contract program, set to expire Sept. 30, the program would be subject to a 5 percent across-the-board cut for all farm payments.
In Cayuga County, MILC recipients could be shorted $1.37 million over the next two years, if milk prices continue to fluctuate.
Schumer, in a press conference Wednesday, said he will lobby to remove the cut, as well as double the annual production cap on how much milk is subsidized to 4.8 million pounds.
Right now the cap is 2.4 million pounds of milk per dairy per year.
He said raising the cap would help medium-size dairies by making them eligible for the program.
A change in the cap could increase participation in the MILC program from 72 to 84 percent of milk production in the state, according to Schumer's data.
The MILC program was part of the 2002 Farm Bill and helped dairy farmers survive low prices by providing more than $186 million in benefits to New York dairies.
The program provides payments to eligible farmers when the price of Boston Class I milk falls below $16.94 per hundredweight.
Connie Patterson, owner of Patterson Dairy in Aurelius, said with 800 cows, she's too big to derive much benefit from MILC.
She said her farm produces to the existing cap in a five-week period, and even with Schumer's proposal, it would only extend her another two or three months.
"The MILC program is really designed for 100-cow dairies; it's a small farm preservation project," she said.
"It's my opinion, but I think it keeps bad farmers in business longer. I would rather let the free market roll."
Kristin Cox of Cato, president of Cayuga County's Farm Bureau chapter, has argued more needs to be done to stabilize milk prices in general. With her husband, Slade, she runs a 150-cow dairy. The Coxes support bi-partisan dairy legislation to establish a minimum price for fluid milk, but until that happens, they say the MILC should be extended.
"It's an inequitable program," Slade Cox said. "For a farm like (Connie's), it's just another piece of paper to fill out to get a little subsidy, and we would rather not survive on subsidies."
To that end, the federal government needs to adopt the National Dairy Equity act, which would create a market-based safety net for dairy farmers in times when it costs more to produce milk than farmers are being paid for it, the Coxes have said.
Schumer agreed Tuesday that the NDEA was preferable to expanding the MILC. A conference of New York representatives, including Rep. Tom Reynolds, R-Clarence, is pushing for a new dairy bill, he said.
"Of course we would rather have the NDEA," Schumer said. "It's our first preference. But right now, I think we have to work for both of them."
On another agricultural front, Schumer said he is working to keep the Canadian border closed to all beef and cattle trade until consumer safety issues surrounding the Canadian mad cow cases have been resolved.
The border is set to reopen March 7, but two recently-discovered cases of mad cow in Canada should give pause to reconsider the decision, Schumer said.
It also brings attention that Canada may not be adhering to proper safety standards, he said.
"Even with two or three cases, people don't buy meat," he said.
New York State Agriculture Commissioner Nathan Rudgers said the border should be reopened only if there is scientific evidence that health and safety concerns are adequately addressed.
He said the state has been in touch with the U.S. Department of Agriculture to convey that opinion.
Rudgers said he had confidence that newly-appointed U.S. Agriculture Commissioner Michael Johanns will do the right thing regarding the border and make the decision based on science and not solely on trade considerations.
Staff writer Louise Hoffman Broach can be reached at 253-5311 ext. 238 or louise.hoffman@lee.net
In Cayuga County, MILC recipients could be shorted $1.37 million over the next two years, if milk prices continue to fluctuate.
Schumer, in a press conference Wednesday, said he will lobby to remove the cut, as well as double the annual production cap on how much milk is subsidized to 4.8 million pounds.
Right now the cap is 2.4 million pounds of milk per dairy per year.
He said raising the cap would help medium-size dairies by making them eligible for the program.
A change in the cap could increase participation in the MILC program from 72 to 84 percent of milk production in the state, according to Schumer's data.
The MILC program was part of the 2002 Farm Bill and helped dairy farmers survive low prices by providing more than $186 million in benefits to New York dairies.
The program provides payments to eligible farmers when the price of Boston Class I milk falls below $16.94 per hundredweight.
Connie Patterson, owner of Patterson Dairy in Aurelius, said with 800 cows, she's too big to derive much benefit from MILC.
She said her farm produces to the existing cap in a five-week period, and even with Schumer's proposal, it would only extend her another two or three months.
"The MILC program is really designed for 100-cow dairies; it's a small farm preservation project," she said.
"It's my opinion, but I think it keeps bad farmers in business longer. I would rather let the free market roll."
Kristin Cox of Cato, president of Cayuga County's Farm Bureau chapter, has argued more needs to be done to stabilize milk prices in general. With her husband, Slade, she runs a 150-cow dairy. The Coxes support bi-partisan dairy legislation to establish a minimum price for fluid milk, but until that happens, they say the MILC should be extended.
"It's an inequitable program," Slade Cox said. "For a farm like (Connie's), it's just another piece of paper to fill out to get a little subsidy, and we would rather not survive on subsidies."
To that end, the federal government needs to adopt the National Dairy Equity act, which would create a market-based safety net for dairy farmers in times when it costs more to produce milk than farmers are being paid for it, the Coxes have said.
Schumer agreed Tuesday that the NDEA was preferable to expanding the MILC. A conference of New York representatives, including Rep. Tom Reynolds, R-Clarence, is pushing for a new dairy bill, he said.
"Of course we would rather have the NDEA," Schumer said. "It's our first preference. But right now, I think we have to work for both of them."
On another agricultural front, Schumer said he is working to keep the Canadian border closed to all beef and cattle trade until consumer safety issues surrounding the Canadian mad cow cases have been resolved.
The border is set to reopen March 7, but two recently-discovered cases of mad cow in Canada should give pause to reconsider the decision, Schumer said.
It also brings attention that Canada may not be adhering to proper safety standards, he said.
"Even with two or three cases, people don't buy meat," he said.
New York State Agriculture Commissioner Nathan Rudgers said the border should be reopened only if there is scientific evidence that health and safety concerns are adequately addressed.
He said the state has been in touch with the U.S. Department of Agriculture to convey that opinion.
Rudgers said he had confidence that newly-appointed U.S. Agriculture Commissioner Michael Johanns will do the right thing regarding the border and make the decision based on science and not solely on trade considerations.
Staff writer Louise Hoffman Broach can be reached at 253-5311 ext. 238 or louise.hoffman@lee.net
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