Washington, July 29 - The leaders of a Dairy Farmers Caucus in the U.S. House said on Wednesday they sought a $211 million increase in U.S. dairy subsidies to offset the lowest market prices in three decades.
The money would be flow through an increase in the payment formula for the Milk Income Loss Contract subsidy, which is based on the price for "fresh" milk bound for sale in supermarkets.
Rep Peter Welch, Vermont Democrat, said MILC payment rates should be increased for the rest of 2009. Rep Joe Courtney, Connecticut Democrat, said an budgetary offset had not been found yet that would allow the increase.
Meanwhile, Wisconsin Sens Herb Kohl and Russ Feingold wrote the White House budget office to encourage the administration to increase dairy support prices. "We strongly encourage your work toward that end," said their letter.
At a news conference, some members of the dairy caucus urged the administration to extend a dairy export subsidy program.
Besides higher support prices, USDA officials have said they may make credit programs available to dairy farmers to restructure their debts.