THE ASSEMBLY
STATE OF NEW YORK
October 21, 2009


Tom Vilsack, Agriculture Secretary
U.S. Department of Agriculture
1400 Independence Ave., S.W.
Washington, DC 20250

Dear Secretary Vilsack:

As you are aware, family dairy farms across the U.S. are currently facing the most difficult economic conditions in the modern history of the country's dairy industry. Here in New York, the average price that dairy farmers have received for their milk in October is $11.01 per hundredweight (cwt.) which is an 84 cents/cwt. slide from May and a $7.84/cwt. decrease from June of last year.

Over the last several weeks, our Conference has held dairy rallies in Chenango, Genesee and Washington counties urging our Governor, David Paterson, to release $150 million in much-needed funding for New York's struggling family dairy farmers.

The farmers we spoke with all told us the same thing - they are being paid prices catastrophically below the price of production for milk. Many dairy producers have been forced to max out loans, sell their cows and lay off valued workers in an attempt to keep their farms in business. The dairy industry in New York State is in serious danger of collapsing and our family dairy farms need immediate financial help to ensure that they can continue to make a living and have a profitable business to pass along to their children.

For these reasons, we respectfully request that you move the $290 million in direct assistance to dairy farmers as quickly as possible through the existing Milk Income Loss Contract (MILC) Program. We also ask that you either double the cap rate or double the payment rate to 90 percent of the MILC program. All producers who have been actively farming in 2009 should be eligible for payments regardless of whether or not they have capped out of MILC, and direct payments should reflect a retroactive MILC payment for the past two months, discounting any payments that already have been distributed.

These actions would help to save one of the nation's most important industries before we lose more farms to these crippling economic times. We thank you in advance for your consideration of this important matter, and we look forward to working with you to support family dairy farms.

If you would like to discuss our ideas in greater detail, please feel free to contact us at your convenience.

Sincerely,
Brian M. Kolb
Member, NYS Assembly
Minority Leader
(315) 781-2030
Cliff Crouch
Member, NYS Assembly
Minority Ranker, Committee on Agriculture
(607) 648-6080
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