Maine: Agriculture

AUGUSTA, Maine — The state would withhold subsidy payments to dairy farmers for one month later this year under a proposal aimed at helping close a budget gap in a program that provides a safety net to milk producers.

The prices paid for raw milk have collapsed in recent months, meaning many dairy farmers are operating significantly in the red. Normally, a state-run dairy price stabilization fund would help close that gap until prices paid to producers rebounded.

But faced with having to trim an additional $2.7 million from the stabilization program’s budget, a legislative committee is recommending skipping the subsidy payment for milk produced this May.