| FOR IMMEDIATE RELEASE |
For additional information or comment, contact::
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| January 28, 2002 |
Chris Tuttle (Green) 202-226-7402
Kate Dwyer (Ryan) 202-225-3031
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The two unveiled legislation Monday to significantly revamp the way the U.S. government deals with dairy markets – legislation they said offers a better reform plan than one proposed in the U.S. Senate.
“National dairy policies have been stacked against our farmers for far too long,” Green said. “The results have been devastating – in Wisconsin we’re losing more than three dairy farms a day. It’s time to stop tinkering around the edges and start implementing sweeping changes. Our bill does that.”
“I don't think anyone could take an honest look at current dairy policy and call it fair,” Ryan said. “Wisconsin dairy farmers have been fighting an uphill battle for decades, and it's time we leveled the field.”
The two-pronged Green/Ryan plan would change the federal milk marketing order system to bring greater equality to milk prices between U.S. regions. Since the 1930s, milk prices have been essentially dictated by the government based on milk producers’ distance from Eau Claire, Wisconsin – the further from Eau Claire, the higher the price. The Green/Ryan proposal would also establish a new price support system to help farmers cope with the ups and downs of the market.
“This bill is a one-two punch to bring more stability and fairness to the way the government handles dairy,” Green said. “It makes the regional milk pricing system more evenhanded, narrowing the unfair price differences between different areas of the country. It also sets up a new way of handling aid to farmers. Instead of doling out massive emergency payments to farmers year after year, our plan essentially sets a price ‘floor’ and compensates folks whenever milk prices drop below a certain level. It’s a more effective and reasonable way to deal with the issue, and gives farmers the peace of mind of having a guaranteed price for their milk.”
“Our plan brings common sense and rationality back to U.S. dairy policy,” Ryan said. “It gives our farmers a decent chance to compete with dairy farmers in other regions, and it puts in place a smarter safety net for farmers to help them when milk prices plunge.”
The proposed changes to the milk marketing orders under the Green/Ryan bill strongly resemble the USDA’s 1999 “Option 1B” plan, which – had it been implemented – would have moved milk prices for dairy producers outside the Midwest closer to those in Wisconsin. Their proposal would also establish an $11.50 per hundredweight “price floor” for milk. Under the plan, whenever the price for “Class III” milk – milk used in cheese production – falls below that floor, the government would offer payments to all dairy farmers compensating them for 100 percent of the price difference on all classes of milk.
The two billed their legislation as a superior alternative to a dairy reform plan offered in this year’s farm bill by Senate Majority Leader Tom Daschle.
“The bottom line is this: the Daschle plan maintains the same core regional unfairness in U.S. dairy policy,” Green said. “Our plan is a national effort to move America closer to a national dairy policy, one that works to help eliminate the regional inequities that have put our farmers at such a terrible disadvantage. Support for the Daschle plan is support for the same kind of policies that have caused such trouble for our Wisconsin dairy farms.”
“We need to get to the heart of what's wrong with dairy policy, and for that we need comprehensive reform of the milk marketing system,” Ryan said. “The Daschle approach simply fails to deliver. In contrast, our bill would tackle the regional unfairness that extends throughout our government's current dairy policy.”
Green and Ryan said they expected the farm bill, including the Daschle language, to pass the Senate. After both houses of Congress have passed the farm bill, the two different versions will be sent to a conference committee to be reconciled. The two said they plan to push the conference committee hard to replace the Daschle proposal with their language.