House Approves Milk Pricing Alternative to USDA Plan

September 23, 1999

The House voted 285-140 Wednesday to change USDA's milk pricing scheme to a formula that many believe will put more money in dairy farmers' pockets. USDA's plan goes into effect next week.

Although the bill is not expected to be considered independently by the Senate, supporters hope House passage will jar the Senate-House conference committee on agricultural appropriations to include the bill's provisions in the final appropriations bill.

The National Milk Producers Federation expects dairy farm revenue will be reduced by $200 million a year if USDA's milk pricing plan is allowed to continue. The House bill helps recapture some, but not all, of that expected loss by forcing the department to use a pricing structure for fluid milk that is more favorable to most dairy farmers.

Jerry Kozak, NMPF CEO, says the vote "is a clear signal that Congress disagrees with the scope of the revisions that USDA has developed. Any system that reduces farm income while not producing any tangible benefit for dairy consumers is a lose-lose proposition for the dairy industry and the public..."

The bill also extends the milk price support program another year. It is scheduled to end Dec. 31.