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New dairy provisions in 2008 farm bill Tuesday, July 15, 2008
Agri News staff writer
CALMAR, Iowa -- Staff members for Senate Agriculture Committee Chairman Tom Harkin outlined dairy provisions in the 2008 farm bill during a meeting last week at the Dairy Center.
The current milk price support of $9.90 per hundredweight will be replaced with separate support prices for cheddar cheese, butter and nonfat dry milk, said Susan Keith, senior counsel for the Senate Agriculture Committee. If the price for one of these commodities is lower than the support price, the USDA will purchase the product at the support level.
The Milk Income Loss Contract program is restored to cover 45 percent of the shortfall between $16.94 per hundredweight and the Boston Class I milk price, Keith said. The $16.94 price will be adjusted for any month when the national average monthly cost of dairy rations exceeds $7.35 per hundredweight. The quantity of milk production that is eligible for a MILC payment is limited to 2.9 million pounds for each fiscal year.
The Dairy Promotion and Research Program now include producers in Alaska, Hawaii and Puerto Rico, who will pay an assessment of 15 cents per hundredweight of milk production, Keith said. Imported dairy products will be assessed at $0.075 per hundredweight of fluid milk equivalent.
The bill authorizes milk producers to voluntarily enter into forward price contracts with milk handlers for sale of milk that is used for manufactured products, Keith said.
Ellen Huntoon, senior staff member on the Senate Agriculture Committee, said that the farm bill reauthorizes competitive grants to support outreach initiatives for beginning farmers. It provides $75 million in mandatory funding through the term of the farm bill.
"When I think of the Dairy Center, I think of beginning farmers, and I think this provision may help you," Huntoon said.
The bill targets conservation provisions toward beginning farmers. There is increased cost share for beginning farmers, and the bill sets aside 5 percent of the funds in EQIP and 5 percent of the acres in the Conservation Stewardship Program for beginning farmers, Huntoon said.
The bill offers assistance for retiring farmers by making them eligible for two years of additional annual rental payments if they sell or enter into a long-term lease for CRP land with a beginning farmer, Huntoon said.
The farm bill creates a beginning farmer and rancher individual development accounts pilot program. It provides grants to enable community-based nonprofits and state, local and tribal government agencies to assist beginning farmers entering agriculture. Beginning farmers who agree to complete financial training and establish a savings plan with the goal of purchasing farmland and equipment has their savings matched by a participating entity. An authorization of $5 million is provided for the program. The farm bill also improves the beginning farmer down payment loan program through FSA |
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