Raise the fees on a gallon of milk, pay the largest farms a little less and explore “any and all ways possible under existing law” to get more money.

Those recommendations are going to the Legislature’s Agriculture, Conservation and Forestry Committee on Wednesday from a group Gov. John Baldacci pulled together this summer to study the ailing dairy industry.

Maine farms, used to the normal cycle of up and down milk prices, have taken a deeper than usual hit in the bad economy. The state safety net that kicks in when prices get too low — the Maine Dairy Stabilization Tier Program — ran out of money for the year in September.

The 20-member Governor’s Task Force on the Stability of the Dairy Industry in Maine is recommending the Legislature:

• Up the milk handling fee paid by dairy processors
Currently, when milk prices to farmers are high, that fee drops to nothing. Since July 2005, it’s never gone higher than 66 cents a gallon. Recommended: A new 4-cents a gallon minimum and new 84-cents a gallon maximum.

“It never goes to zero — you can build up a kitty for when prices go low,” said Tim Drake, executive director of the Maine Milk Commission.

He said processors on the task force agreed to the increase. If new rates were adopted, and people drink as much milk as they do now, that change is projected to raise $4 million more over two years.

• Create a fourth payment tier (currently, there are just three)
The largest 13 or 14 farms, responsible for more than one-third of the milk in Maine, would get proportionally less support after milking more than 76,803 hundredweight, Drake said. That move would stretch state aid farther.

• Pass something quickly
Any changes have to be passed as an emergency and signed by the governor by Feb. 1 to be enacted immediately. Otherwise, it’s wait until 90 after the close of session.

State Sen. John Nutting, D-Leeds, who sat on the task force, said he’s optimistic something can be passed by Feb. 1.

“We’re going to try to fast track it,” he said, noting that he was among those who split with the majority on how tier money ought to be paid out. “I’m not sure which version is going to pass.”

He co-chairs the Agriculture, Conservation and Forestry Committee which, Nutting said, had tentatively set Jan. 8 for a public hearing on the task force report and Jan. 13 as a workshop date.

“I myself, I think that task force was necessary because of the financials of the state. Anything that keeps the Maine tier program will help these farms,” said Dale Cole, president of the Maine Dairy Industry Association.

Dairy represents a $570 million industry in Maine with 315 farms and 4,000-plus jobs, according to the report.

Drake said market prices to farmers have gone up each of the last three months after a sharp low this summer.

“I think we lost four or five farms this last month,” Drake said. “Next month will be the key. We’ve seen the worst of it, I think, until next time.”

Wednesday’s meeting was set for 10 a.m. at the State House in Augusta but could be canceled due to weather.

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