FOR IMMEDIATE RELEASE	CONTACT: Doug McGinn
March 31, 1999	(202) 225-3031

RYAN CLAIMS USDA OVERHAUL OF MILK PRICE SYSTEM FAILS TO FULLY ADDRESS PROBLEMS FACED BY WISCONSIN DAIRY FARMERS

WASHINGTON - Following the release of a USDA plan to overhaul the outdated federal milk pricing system, First District Congressman Paul Ryan today expressed mixed reviews for the proposal. Ryan noted that while the proposal is a step in the right direction it fails to fully address the price disparities faced by Wisconsin farmers compared with those in other regions of the United States.

"While these reforms will alleviate some of the financial pressures placed on Wisconsin's dairy producers, they simply do not create the fair playing field we were hoping would be established by the USDA," said Ryan. "Modest corrections in lieu of wholesale reform is not the answer. I think it clear that the financial risks associated with dairy farming in Wisconsin today are a direct correlation to the fact that we've lost over 7,000 dairy farmers over just the last six years."

"Much of the program that was established in the 1930s remains in the new proposal. Our dairy producers are being hamstrung by horse-and-buggy policies even though technological gains in dairy production have been exponential. To say that producers in other regions can't compete under free market policies is a falsehood that continues to hammer away at the bottom line of Wisconsin farmers."

Under the old system, developed in the 1930s, minimum milk prices were set geographically - the further away from Eau Claire, Wisconsin, the higher the price a farmer could receive for milk. The pricing system was designed to help dairy farmers survive in areas where dairy production was less profitable - working to ensure each area of the country would have an adequate supply of milk. The program did not accommodate for technological advances in production, storage, or transportation.

For additional information, please contact Doug McGinn at (202) 225-3031.

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