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Lawmakers from dairy-producing states
announced agreement Wednesday on $350 million in aid for struggling
milk farmers.


      Some $290 million would go for direct support of dairy farmers
under a program to be devised by the Agriculture Department,
according to Rep. David Obey and Sen. Herb Kohl, both Wisconsin
Democrats. 


An additional $60 million would cover purchases of
surplus cheese and other dairy products in hopes of raising prices.
Food banks and other nutrition programs would get the goods.

      The Senate had approved the $350 million in August, but without
binding direction on how the money would help farmers.


      The contentious issue of dairy subsidies clouded talks between
House and Senate negotiators trying to reach a compromise.

Supporters of smaller dairy operations in Wisconsin, Vermont and
other states faced off against lawmakers such as Sen. Dianne
Feinstein, D-Calif., whose state is home to huge dairy operations.


      Lawmakers disclosed the agreement before an afternoon
negotiation on a $23.3 billion agriculture spending bill for the
budget year that starts Thursday.

      The House's version didn't include any emergency dairy aid. But
Obey, chairman of the House Appropriations Committee, embraced the
$350 million proposal and wanted most of it for a program that pays
farmers when prices fall. 

Benefits are capped after the first 3
million gallons of milk produced, equivalent to the annual output
of perhaps 200 cows.


      That has disproportionately benefited family farmers in the
Northeast and Midwest with smaller herds.

      Obey's plan ran into opposition from Feinstein and others. So
Kohl, the Senate's chief negotiator and chairman of the Senate
Appropriations subcommittee on agriculture, came up with a
compromise: $290 million for livestock producers and flexibility
for the Agriculture Department in distributing the money. 


The
dollars are expected to be divided between additional purchases of
surplus dairy products and direct payments to farmers.

      "The goal is to get the money into the pockets of family-based
dairy farmers all over this country who are fighting right now for
their survival," said Sen. Bernie Sanders, the Vermont
independent.

      Added Kohl: "These are desperate times in farming."

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Amid a crisis of low milk prices and mounting
losses in dairy country, lawmakers in Congress have agreed to a 
$350 million emergency aid package aimed at helping struggling milk
farmers.

Congress announces $350 million dairy aid package

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