In a policy proposal announced September 17, the European Union is proposing to pay each of its dairy farmers €15,000, or a little more than $22,000 based on the current exchange rate.
The one-time payment seems like a lot. But keep in mind that USDA has been doing much the same here in the United States. It will pay out more than $1 billion in Milk Income Loss Contract payments February through September of this year. With roughly 57,000 dairy producers in the United States, that's an average payment of $17,500. MILC payments vary, of course, and are capped at just under 3 million lb. of annual milk production.
EU Agricultural Commissioner Mariann Fischer Boel has also presented ideas that would allow her to intervene more quickly during extreme market disruptions such as those experienced this year. But she continues to oppose efforts that would halt the elimination of EU milk quotas in 2015. For more information, go to: