Maine dairy group seeks to extend subsidy

PORTLAND – Maine’s dairy industry, which continues to struggle with low prices, says it won’t give up on efforts to extend a federal subsidy program that’s scheduled to expire next fall.

Congress has refused to extend the Milk Income Loss Compensation program, even though President Bush supported it during his campaign. Lawmakers and advocates say they’ll try again to win the support needed to extend the program.

“I’m not ready to give up hope,” said Julie-Marie Bickford, executive director of the Maine Dairy Industry Association.

Low prices have been a key factor in the decline of Maine’s dairy industry. The number of farms in the state has dropped from 674 in 1990 to 382 today, leaving dairy farmers struggling with prices they say fail to provide a living.

The federal government created the Northeast Interstate Dairy Compact, which guaranteed farmers a minimum price for milk passed on to consumers.

But Congress refused to renew the program after U.S. Sen. James Jeffords of Vermont quit the Republican Party in 2001 and became an independent. As part of the 2002 Farm Bill, Congress agreed to create a similar subsidy for farmers through taxes.

Critics contend the subsidies are an unfair burden that neither taxpayers nor consumers should carry. But others say the MILC program is still needed.