Milk Producers Face `Bad and Worse' Options in Vote

July 16,1999

The National Milk Producers Federation says milk producers face the choice between "two very unpalatable options" when voting in early August to reform the federal milk marketing order system. For one thing, the vote will not influence what they want most: a pricing option most believe will yield higher milk prices.

Dairy farmers will be voting on a reform package "that we believe is not in the best interest of dairy producers across the country," says CEO Jerry Kozak. "What they'll be voting on is USDA's proposal, issued earlier this year, which is not acceptable to the vast majority of U.S. dairy farmers."

That's because the USDA proposal includes the Option 1B milk pricing scheme that analysts believe means lower milk prices. Option 1A is included in legislation pending in Congress but that probably will not be approved by the time the referendum is held Aug. 2-6.

"When they consider their options in the next few weeks, dairy farmers will have a terrible choice between something that's bad and something even worse: either accept the deeply problematic proposal developed by USDA or vote to have no federal orders at all. We believe this situation is unacceptable and will continue to urge members of Congress to expedite the legislative changes in the USDA program that they have been debating," says Kozak.

"A vote in favor of implementing the USDA final rule is in no way a ringing endorsement for that proposal," he adds. "It simply reflects the fact that producers, while hoping that congress quickly approves changes...don't want to vote the system down."