Immediate
Action Needed to Incorporate Dairy Compacts and other Dairy Policy Reforms into
the 2002 Farm Bill! Please
Contact Your US Senators and US Representatives and Ask Them to Instruct the House/Senate
Farm Bill 2002 Conference Committee to Give States and Dairy Farmers a Choice
Between Dairy Compacts and a New Direct Payment Program.
Since 1985, the National Grange has supported regional dairy programs. With the
enactment of the Northeast Dairy Compact as part of the 1996 Farm Bill, prices
for milk in New England have been stable, consumers have benefited from locally
produced milk, and food assistance programs have been unaffected. The National
Grange strongly believes that Congress should reauthorize the Northeast Dairy
Compact, create a Southern Regional Dairy Compact and authorize the creation of
additional regional dairy compacts as part of the 2002 Farm Bill. Reauthorization
and expansion of the Northeast Dairy Compact would save taxpayers at least $500
million in direct payments to dairy farmers that are targeted for this region
of the under the Senate version of the 2002 Farm Bill. The
National Grange also supports the enactment of direct, permanent financial assistance
targeted at all moderate sized, family owned dairy operations during times of
low prices for those dairy farmers located in states and regions of the nation
where Regional Dairy Compacts are unlikely to significantly raise prices for farmers.
Under the direct payment plan proposed in the U.S. Senate version of the 2002
Farm Bill, dairy farmers located in states outside of the Northeast will be eligible
for direct payments from the federal government during times of low prices. Dairy
farmers in these areas would receive quarterly payments equal to 40% of the difference
between the current quarterly average all-milk price and the historic five-year
average price whenever the current price falls below the five year average. Payments
would be limited to the first 8 million pounds of annual production or approximately
a 400 dairy cow herd. Because
of significant regional differences in the manufacture and utilization of dairy
products, the National Grange believes that individual states and regions should
be given the choice between enacting Regional Dairy Compacts or participating
in the federal direct payment programs. The National Grange believes that this
compromise will best serve the interests of all dairy farmers across the nation.
Action
Plan---The 2002 House/Senate Farm Bill conference committee is scheduled to
begin its work writing the final version of the 2002 Farm Bill immediately after
they return from the President's Day Recess on February 25. Please Ask your US
Senators and US Representatives to immediately instruct the 2002 Farm Bill conference
committee to support the following Grange supported compromise dairy programs
as part of the 2002 Farm Bill! -
Support including dairy compact legislation in the final version of the 2002 Farm
Bill including: permanent authorization and expansion of the Northeast Regional
Dairy Compact; creation of a Southern Regional Dairy Compact; and authorizing
the formation of dairy compacts among states in other regions.
- Make
the Federal dairy support price of at least $9.90 per cwt. a permanent program
as part of the 2002 Farm Bill.
- Support
the US Senate proposal for direct Federal financial assistance targeted to moderate
sized dairy farms that are not covered by Regional Dairy Compact Programs when
the national average all-milk price falls below the historic five-year average
all milk price.
- Support
consensus proposals advocated by the dairy industry to: authorize a national Johne's
Disease control program; include importers of dairy products in promotion and
research check-off programs; extend the Dairy Export Incentive Program; and reform
mandatory USDA dairy inventory and price reporting requirements for cheese, butter
and non-fat dry milk.
Thank
you for your grassroots participation in the National Grange Legislative Program. | 
