The National Farmers Organization (NFO) is calling on the incoming Obama Administration and Congress to bolster Milk Income Loss Contract (MILC) payments.
"The milk price difference between December '08 and January '09 is alarming. It's expected to fall from $15.28 to just $10.75, a drop of $4.50,” says Brad Rach, NFO Dairy Division Director. "We believe a dairy farm stimulus fund should be established to increase milk income loss payments for dairy producers.
"In February, producers can expect to receive $12.50 to $13, once the current MILC payment is factored in,” he says. Bolstering the MILC payment would not only help dairy producers directly, it would also stimulate the ag economy, he says.
Long term, NFO believes producers and cooperatives need to create a pricing agency to bolster milk prices.