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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) __________________________ |
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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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