WASHINGTON, D.C. – U.S. Senator Charles E. Schumer warned that the deadline is fast-approaching for the House of Representatives to take action and pass the bipartisan Senate Farm Bill, in order to avoid the “dairy cliff,” which he said would have “a devastating impact on dairy consumers and producers alike.”

Schumer called on the House to take action before year’s end, in order to avoid the potential for consumers’ milk prices to double across New York and to temporarily bring back the Milk Income Loss Contract (MILC) program for over 5,400 dairy farms in Upstate New York. Passing the Farm Bill would also bridge the gap before a new margin protection program can be rolled out, he said.

MILC, which provided over $41 million to New York dairy farmers in 2012 before it expired on September 30th, was the primary safety net that compensated dairy producers when milk prices fluctuated and cow feed costs jumped, as they have due to this year’s drought.

The 2008 Farm Bill expired on Sept. 30, and on Jan. 1 the nation will begin to revert to 1940s era agriculture policy. As it relates to New York dairy, that 1940s era policy requires the government to purchase nonfat dry milk, cheese and butter at prices significantly above current market rates. The massive government purchases of dairy products under this outdated law could cause milk prices to rise above $6 per gallon, according to the National Milk Producers Federation (NMPF).