Senator Chuck Schumer (D-NY) upped the ante in efforts to support dairy producers today, reportedly asking Secretary Vilsack to essentially double MILC payments and use CCC funds to do so. From the Times Union of Albany:
Schumer, D-N.Y., just wrapped up a phone call with Vilsack, in which he urged the agriculture secretary to tap funds from the Agriculture Department’s Commodity Credit Corporation to immediately give financial relief to dairy farmers. Under federal law, the agriculture secretary has the authority to use CCC funds to support the prices of agricultural commodities with direct payments to farmers.
Here is Schumer's take on the situation:
“We do believe the price of milk will come back up,” Schumer said. “Six months from now, most of our farmers would be able to make it. But they can’t make it now” without financial help. “No farmer is going to get rich on this but at least it would allow them to survive,” Schumer added. We don't doubt that dairy producers are having a hard time -- they are and they have been for months. Nor do we doubt Senator Schumer's sincerity. We do, however, puzzle over the economic contradiction embedded in the Senator's statement. Keeping milk production on line -- that is, facilitating continuation of supply -- is somewhat at odds with potential for milk prices moving higher in six months from now. That said, direct payments under the MILC facility would seem to be less disruptive to the marketplace than higher support prices -- at least the market can theoretically get down to levels where product clears. The temperature in Washington is heating up as Autumn approaches.
