ALBANY - Governor David  Paterson applauded U.S. Senator Kirsten Gillibrand for responding to his request to introduce legislation that would provide additional assistance to New York dairy farmers, who continue to struggle with milk prices below the cost of production. The legislation would double the amount of money farmers receive from the Milk Income Loss Contract (MILC) program, a concept similar to what the Governor had proposed in a letter he sent the Congressional Delegation last February.

“Our dairy farmers are some of the greatest contributors to our Upstate rural communities and economy,” said Governor David A. Paterson. “Unfortunately, they are victims to a federal pricing system that is putting their livelihoods at risk. The proposal introduced by Senator Gillibrand is our best hope for some immediate, although short-term, relief. I appreciate the Senator’s commitment to this vital industry and I know that she, along with Senator Charles Schumer and our entire congressional delegation will work tirelessly to provide the assistance our farmers so desperately need at this time.”

U.S. Senator Charles E. Schumer is also on board.  In a personal letter to Secretary Of Agriculture Tom Vilsack, Schumer requested that prices paid to farmers by the U.S. government for dairy products purchased through the Dairy Product Price Support Program be raised by approximately 5%. 

Schumer said that such a move is an important way to help struggling dairy farmers throughout New York State immediately, while a long term solution to low milk prices is established. A decreased demand, an abundant supply and soaring production costs have caused the price of dairy products to decrease dramatically to below $12 per 100 pounds in recent months, while at the same time the cost of producing 100 pounds of milk in New York was more than $25, throwing dairy farmers everywhere into crisis. Schumer is urging that the prices be raised to at least $1.19 per pound for block cheese, $1.16 per pound for barrel cheese, and $0.84 per pound for nonfat dry milk.

Schumer wrote in support of a proposal made by the National Milk Producers Federation.

“We all know that Dairy Farmers are facing a crisis in New York State and across the country,” said Schumer.  “We need to address this problem both in the long term by increasing and improving the MILC program, but we also need to take actions that can help immediately.  Raising the price that the Department of Agriculture pays for commodities is a great way to help farmers, and is something that can have an immediate effect.  Secretary Vilsack has acknowledged the severity of the crisis, and I urge him to take immediate action.”