Dairy Interests Don't Support Leahy

November 19, 2001

Neither the National Milk Producers Federation or the International Dairy Foods Association supports a provision in the Senate farm bill to create a complex new dairy pricing system. The system, proposed by Sen. Patrick Leahy (D-VT), would create a pricing structure built on the federal order system with elements similar to those in the defunct Northeast Dairy Compact.

Asked about her reaction to the provision by the National Association of Farm Broadcasters, Agriculture Secretary Ann Veneman was noncommittal, apparently not having had the chance to study the proposal or discuss it with USDA officials. "I think we really need to look carefully at the kind of policy that we develop not only for the dairy policy but for all sectors, to make sure that they can really continue to adapt to the changing consumer marketplace and be a part of a growing industry in this country which I think has been very, very successful and will continue to be so," she said.

"While appreciative of the intention of the Leahy proposal to enhance dairy farmer income," said NMPF, the federation "cannot support the proposal as written." Leahy's concept establishes a national Class I price floor with national pooling of those revenues, institutes a regional supply management system and provides some supplemental funding for Class III prices.

In a statement on its web site, IDFA said simply, "IDFA encourages its members to contact senators now to oppose the costly Leahy dairy provisions."