Contacts:
Kelly Loftus, Agency of Agriculture, (802) 828-3829

Friday, May 16, 2008

Montpelier, Vt - With a final vote of 81 to 15 the Senate yesterday approved a five-year Farm Bill that will assist farmers and consumers. The vote was supported across party lines and was passed in the House and the Senate with more than two-thirds majority, which is required to override a presidential veto. The Farm Bill is expected to reach the White House next Tuesday, May 20, 2008.

Vermont Agriculture Secretary Allbee has been working closely with Senator Patrick Leahy and his staff, Senator Bernie Sanders and Congressman Peter Welch, and other counterparts in the Northeastern states, to finalize a Farm Bill that benefits Vermont agriculture.

“I applaud the leadership of Senator Leahy in developing and seeking passage of a Farm Bill that is beneficial to farmers and consumers in Vermont,” said Allbee. “The efforts of Vermont’s Congressional Delegation including Senator Sanders and Congressman Welch were instrumental in helping to protect our state’s agriculture sector.”

The final version of the federal Farm Bill passed by the House and Senate included the critical “Feed Cost Adjuster Amendment” to ensure Vermont’s dairy farmers will continue to benefit from the federal milk price support program despite the surging cost of animal feed.

Initially proposed by Senators Patrick Leahy (VT) and Robert Casey (PA), the Feed Cost Adjuster Amendment adds language to adjust the price at which payments are made to farmers under the Milk Income Loss Contract (MILC) program based on the composite monthly price of feed (corn, soybeans and alfalfa hay.) Without such action, the price of milk could potentially remain above the payment trigger price indefinitely.

“The feed cost adjuster amendment will ensure that farmers in Vermont will receive assistance from the U.S. Department of Agriculture when the price they are paid for milk fails to keep pace with the cost of producing it,” said Governor Jim Douglas. “I’m very pleased with the efforts of Vermont’s Congressional Delegation to keep pressure on farm bill negotiators to include the feed adjuster cost amendment. This will protect Vermont’s dairy farmers when they need it most.”

Citing the corn ethanol boom, Allbee commented that not only has the price of food gone up, but also the cost to feed animals, including dairy cows, causing even higher prices for milk. By helping our local dairy farmers pay for their feed costs, his hope is that this will lower milk prices for consumers in the end.

“Rising energy and feed costs put a major strain on local dairy farmers, leaving them in a difficult economic situation because they have no control over the price of milk. This bill will help by tying MILC support to what dairy farmers pay for their feed,” said Allbee.

The Farm Bill includes $230 million for research on specialty crops commonly grown in Vermont including blueberries, apples, and asparagus. It also provides funding for nutritional programs, conservation and renewable energy.

To learn more about the Farm Bill visit www.vermontagriculture.com.