One of the most comprehensive ideas is from the Pennsylvania Department of Agriculture, according to Kunde. The proposal urges Congress to eliminate the support program, restructure the MILC program, and develop a Milk Revenue Insurance Program to “help farmers create their own revenue protection.”

“This is significant,” Kunde said, “because Pennsylvania is a leading dairy state, ranking fifth in milk production with nearly 14 percent of all U.S. dairy herds.”

Pennsylvania farmers received $213 million in MILC payments through November 2006, ranking them third behind farmers in Wisconsin and New York.

Referred to as the Milk Target Price Program, the plan would make payments to all dairy farmers whenever the Class III milk price falls below a determined target level. Unlike MILC, which pays on only 34 percent of the milk produced by a farmer, the Pennsylvania program would pay on 100 percent of the difference between the target price and a lower market price.

This approach would establish “a better price floor than the price support program,” according to Kunde, and “provide more income security than the MILC payment.” Pennsylvania’s revenue insurance program would provide farmers with income protection against milk revenue losses from natural disasters and price fluctuations. It would enable dairy producers to purchase insurance based upon the five-year adjusted average milk revenue per cow.

“(The program will) help producers reduce downside risks and improve their ability to make long-term business investments wi