[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 THE NORTHEAST INTERSTATE DIARY COMPACT

  Mr. MITCHELL. Mr. President, I rise today in support of the Northeast 
Interstate Dairy Compact. Unfortunately, the Senate was unable to 
proceed to the bill during this session of Congress. However, it is my 
hope that the 104th Congress will take up the compact early in the next 
session and provide New England dairy farmers with the relief they 
need.
  The Northeast Interstate Dairy Compact was presented to the Congress 
following the unanimous approval by the participatory states and strong 
bi-partisan support from the New England congressional delegation.
  The compact addresses one of the biggest problems facing small dairy 
farmers--volatility in the national marketplace. The compact is 
designed to reassert a measure of stability and fairness by creating a 
regional commission to set prices for fluid milk sold in New England. 
The commission will be comprised of a delegation from each State that 
will include representatives from dairy and consumer groups to ensure 
fairness and balance in carrying out their responsibilities.
  Mr. President, the need for this compact is clear. The Judiciary 
Committee has reported that the price New England dairy farmers receive 
nationally is lower now than it was 10 years ago. However, the 
declining price paid to farmers has not benefited consumers. In fact, 
consumer prices for drinking milk have increased more than 30 percent 
in the last decade. Fluctuations in the price farmers receive for their 
milk have worked to the benefit of milk processors and retailers, not 
farmers of consumers.
  The declining fortunes of the small dairy farmers can be seen most 
clearly in Maine. Ten years ago, Maine was home to more than 1,800 
small dairy farms. Today, there are approximately 600 dairy farms 
averaging 50-55 dairy cows per herd. Maine's dairy farmers have fought 
a losing war of attrition against instability and volatility in the 
national dairy market. This instability is threatening to end a 
centuries old tradition of Maine's economy and social fabric.
  This tradition has faced another threat as a result of a recent 
decision by the U.S. Court of Appeals for the First Circuit. The 
Appeals Court stuck down a Maine law that had provided financial 
compensation for local diary farmers. The absence of financial 
compensation from the Maine Dairy Stability Fund has placed an even 
greater burden our dairy farmers.
  Contrary to recent assertion, the benefits of this compact do not 
come at the expense of other regions of the country. The compact will 
not effect consumers in other States because it applies only to fluid 
milk sold in New England. In addition, the compact will not effect 
farmers in other regions because it can only regulate prices where milk 
is sold, rather than where it is produced. This allows any farmer to 
market their milk in the compact region, regardless of where a farmer 
is located.
  Mr. President, this is an important piece of legislation for Maine 
and New England. The Northeast Interstate Dairy Compact will create a 
system where consumers and producers can collectively regulate the 
price processors pay for milk in New England and establish a stable 
milk industry which can benefit all interested parties. Let me 
reiterate, this compact affects only fluid of Class I milk purchased in 
New England--a market that accounts for only 3 percent of the Nation's 
milk production.
  I regret that I will not be here next year to help enact this 
important legislation. Fortunately, the distinguished Senator from 
Vermont and chairman of the Agriculture Committee, Senator Leahy, will 
be here to continue his leadership on this issue. Senator Leahy has 
been a tireless champion of this cause putting in countless hours of 
hard work to get this bill before the body. His leadership on this 
issue will continue to benefit of every dairy farmer and consumer in 
New England.
  It is my hope that the Congress will grant its consent to this 
compact next year. Through the efforts of Senator Leahy and all of my 
colleagues from New England, I am confident that the Senate will 
recognize the value of this compact and give New England dairy farmers 
the kind of future they so richly deserve.

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