[Congressional Record Volume 140, Number 71 (Thursday, June 9, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 9, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
INTRODUCTION OF A BILL TO CREATE THE NORTHEAST INTERSTATE DAIRY COMPACT

                                 ______


                           HON. JOHN W. OLVER

                            of massachusetts

                    in the house of representatives

                         Thursday, June 9, 1994

  Mr. OLVER. Mr. Speaker, I rise today to introduce a bill to approve 
the Northeast interstate dairy compact. Its purpose is to restore 
vitality to the region's dairy industry.
  The Northeast interstate dairy compact is the product of 6 years of 
cooperative work by the New England States. Despite their potentially 
divergent interests, the four milk importing, or consumer, States of 
Connecticut, Massachusetts, New Hampshire, and Rhode Island have united 
behind this common purpose with the two exporting, or producer, States 
of Maine and Vermont. The successful harmonizing of the producer and 
consumer interests, along with the needs of dairy processors, led to 
the uniform passage of this compact by the six New England States.
  As required by the Constitution, prior to its submission to Congress, 
the text of the compact contained in this resolution has been enacted 
into law by the five States of Connecticut, Massachusetts, New 
Hampshire, Rhode Island, and Vermont and approved under law by the 
State of Maine.
  I am joined by Representative Nancy L. Johnson of Connecticut and 
Representative Richard Neal of Massachusetts in introducing this 
legislation which is cosponsored by 17 other members of the New England 
delegation and Mr. McHugh of New York. Senator Leahy has introduced an 
identical bill in the Senate which is supported by all 12 members of 
the New England Senate delegation. This unified support is further 
testimony to the compact's effective balancing of the consumer and 
producers interests.
  The State action and our unified support makes clear the historic 
importance of the dairy industry to our region. The New England dairy 
industry has long played a central role in our economy and culture. 
Beyond the provision of a local supply of pure and wholesome milk, the 
industry is part of our industrial base, and a critical component of 
our economy.
  Instability in the dairy industry emerges more subtly then in other 
industries. Farmers sell out individually, and we tend to think only 
about the single farm that has been lost. Local dairies close and 
probably only the local community will notice. But the fact is that for 
every dairy farm that goes out of business it is estimated that 3.4 
people lose their jobs through the multiplier effect. Over the past 10 
years our region has lost more than 8,000 jobs.
  In 1984, the Northeast had 6,668 farms, 663 of which were 
in Massachusetts. The region also had 51 fluid processing plants, most 
of which were located in Massachusetts, and 13 manufacturing plants.

  Today, the Northeast has about 4,303 farms. About 366 of those farms 
are in Massachusetts. I say ``about 366'' because just as of last month 
we lost the last dairy farm in the town of Granby in western 
Massachusetts. The numbers in my State are dropping right before our 
eyes. This has resulted in there being only 24 processing plants and 7 
manufacturing plants in the region.
  The multiplier effect goes beyond farms, processors, and plants. The 
shock waves are felt continuously throughout the rural economy. In 
Vermont's Franklin County, for example, in just the last 13 years, the 
number of equipment dealerships has fallen from 13 to just 2. Feed 
dealerships, veterinarians, and other businesses dependent on dairy 
farms have been similarly affected. In Massachusetts, we are on the 
verge of losing forever this basic infrastructure for dairy farming.
  The three States of Maine, Massachusetts, and Vermont share common 
interests in the direct importance of the dairy industry to each of 
their economies. The success of this compact, however, depends on those 
States which have little economic dependence on the production or 
processing of milk. With passage of the compact, Connecticut, New 
Hampshire, and Rhode Island have recognized that it is consumers who 
ultimately bear the burden of an unstable dairy industry. Milk is a 
perishable product. It can be moved long distances only at a high cost. 
The consumers in New England, wherever located, are thus dependent on a 
stable, local supply of fluid milk.
  Instability in the industry is traceable in large measure to the 
persistent fluctuations in the price paid by processors to dairy 
farmers. Federal and State governments have together regulated this 
price since the 1930's. Federal law establishes a comprehensive system 
of minimum price regulation called the Federal milk marketing order 
system. This law allows States to regulate above the minimum price when 
necessary.
  However, milk crosses State lines much more than it did in the 
1930's. In New England, two States produce almost all of the milk 
consumed by the region. Therefore, most of the milk consumed in our 
region crosses State lines and becomes affected by the interstate 
commerce clause. This hampers individual State efforts to regulate 
above the Federal minimum price. The compact restores the ability of 
our region to exercise this traditional regulatory authority.
  The compact creates an interstate commission composed of farmers, 
processors, and consumers from each New England State. The commission 
is required to weigh all of the represented interests and regulate the 
price paid to farmers by fluid processors throughout the regional 
marketplace. The amount of this prices that is greater than the Federal 
minimum price is pooled and paid to the region's dairy farmers.
  The interstate commission is also responsible for preventing 
overproduction of milk in our region. Should overproduction precautions 
fail and the Commodity Credit Corporation [CCC] removes any extra fluid 
milk from the market, the region is required to reimburse the CCC.
  Mr. Speaker, the Framers of the Constitution contemplated long ago 
the need for interstate cooperative action by including the interstate 
commerce clause. Consistent with their vision, I believe I am 
representing both the interests of my constituents and working in 
common purpose with my fellow cosponsors from throughout New England, 
by sponsoring this bill to approve the Northeast interstate dairy 
compact. I look forward to working with members of the House Judiciary 
Committee in security its ratification.

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