The National Grange of the Order of Patrons of Husbandry
Action Alert Updates

 

Urge Your U.S. Senators and Representative To Co-Sponsor
S. 2525 and H.R. 4597, the National Dairy Equity Act!

The National Dairy Equity Act (NDEA) is a comprehensive plan that establishes a minimum price for fluid milk and creates a market-based safety net for dairy farmers during times of low milk prices in every region of the country.

6/25/2004


The National Dairy Equity Act (NDEA) was introduced last week on June 16, in the House by Reps. Thomas Reynolds (NY) and John McHugh (NY), and in the Senate by Sens. Arlen Specter (PA), Hillary Clinton (NY), and James Jeffords (VT). It would create a largely-processor funded financial safety net to protect dairy farmers across the country when the current Milk Income Loss Contract (MILC) program expires in September 2005. Text of S. 2525 | Text of H.R. 4597

The National Dairy Equity Act (NDEA) would divide the country into five marketing regions by establishing Regional Dairy Marketing Areas (RDMA) in the Northeast, Southern, Midwest, Intermountain, and Pacific regions. In each of the five RDMAs, a Regional Dairy Board would be responsible for setting the minimum price for Class I (fluid) milk sold in that region, which farmers in the region would then approve. Should the Class I price fall below the established minimum price, each region would receive market-based differential payments from a newly established national fund based on a set formula. In the event that the fund was to have a shortfall, the U.S. Secretary of Agriculture could supplement the payments with federal dollars to ensure that the Regional Boards, and subsequently the dairy farmers themselves, would receive their full payments. Unlike the Northeast Dairy Compact, the NDEA is designed to work in every region of the country, including the Upper Midwest.

Furthermore, this program would be entirely optional for the states. State governments could choose to opt out of having their dairy farmers participate in this program. Each region would have an appointed board of local representatives that would determine whether farmers in that region would continue to receive direct payments through the MILC program, or whether they should be paid according to a formula established in the Dairy Equity Act.

"Since the loss of the Northeast Dairy Compact we have lost and continue to lose many dairy farms in Connecticut and the other New England states. Dairy farmers are receiving approximately $1.00 per gallon for their milk as it leaves the farm, but it is costing them $1.35 per gallon to produce their milk. Meanwhile, the identical gallon of milk is being sold in retail stores for prices ranging from $2.99 to $3.79 per gallon," explained Mr. Gordon Gibson, the Connecticut State Grange Legislative Director, when he visited the offices of his Senators and Representatives during the National Grange Legislative Fly-In last month.

The National Grange passed a resolution at its 137th annual convention last year that supports passage of the National Dairy Equity Act.

THE NATIONAL DAIRY EQUITY ACT HAS JUST BEEN INTRODUCED AND WILL BE CONSIDERED IN THE HOUSE IN THE NEXT FEW WEEKS. PLEASE URGE YOUR SENATORS AND REPRESENTATIVE TO CO-SPONSOR THIS LEGISLATION AND MOVE QUICKLY TO PASS IT.

Contact List of U.S. Senators
Contact List of U.S. House Representative


Sample Letter:


Dear Sen./Rep. ___________:

I am writing to urge you to co-sponsor the National Dairy Equity Act (S. 2525 and H.R. 4597) recently introduced with bi-partisan support in both houses of the Congress.

By restoring regional input in dairy pricing, the NDEA would temper the volatility in the marketplace and guarantee that dairy farmers nationwide get a sensible price for the milk they produce. In addition, the NDEA will accomplish this goal in a way that benefits dairy farmers in every region of the country - from New England to the South to the Midwest to the West Coast.

Please save the future of our nation's dairy family farms by co-sponsoring this important legislation.

Sincerely,

(Signature)
(Name)__________________________

(Grange/Grange name and number) __________________________

 

If you have any questions or comments please contact Legislative Research Analyst Chil-Sook Hwang by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 109. Thank you for your grassroots participation in the National Grange Legislative program.

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