Dairy Farmer Vote Given `Grudgingly'

September 1, 1999

It may have been overwhelming, but it also was given "grudgingly." The National Milk Producers Federation also terms the early-August referendum on USDA's final milk marketing order reforms "not an endorsement for the proposal."

Producers in all of the newly drawn 11 federal milk marketing orders approved the final order with close to 100% votes; the range was 90.5% in the Northeast to 100% in Florida. The largest number of producers eligible to vote also was in the Northeast (18,570). Farmers voted in each order separately from the other orders. The number of orders had been reduced from 31 to 11 by Congress.

"The votes in favor of implementing the USDA final rule are not an endorsement for the proposal," says NMPF CEO Jerry Kozak. "Our members needed to approve the final rule so that Congress can take further action on the issue when they return to town. If producers had voted out the federal order plan, there would be nothing for Congress to remedy."

Producers were faced with a vote either for or against the entire reform package as it applied to their order. A vote against the reforms would result in the dissolution of the order and, essentially, a free market system for that order with no government programs in effect.

"We will continue to urge members of Congress to expedite legislative changes in the USDA program so that producers ultimately will be offered a program they can live with," says Kozak. NMPF believes that if the USDA proposal is implemented as it now is written, dairy farmer income will be reduced by nearly $200 million a year compared with the current system.

The agricultural appropriations bill probably will be the vehicle for legislative change. House and Senate conferees are to meet later this month in hopes of getting the bill finalized an into effect by Oct. 1 when the new fiscal year begins. NMPF wants changes made in how milk is priced; other changes include extending the milk price support program and authorizing new and extended life for dairy regional compacts.