[Congressional Record Volume 143, Number 17 (Tuesday, February 11, 1997)]
[Senate]
[Pages S1239-S1240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 SENATE RESOLUTION 52--CONCERNING THE NEED TO ADDRESS THE CURRENT MILK 
                                 CRISIS

  Mr. SPECTER (for himself, Mr. Santorum, Mr. Feingold, Mr. Kohl,

[[Page S1240]]

Mr. Jeffords, and Mr. Leahy) submitted the following resolution; which 
was ordered to lie over, under the rule:

                               S. Res. 52

       Whereas, during the last few months farm milk prices have 
     experienced substantial volatility, dropping precipitously 
     from $15.37 per hundredweight in September, 1996 to $11.34 
     per hundredweight in December, 1996, while simultaneously 
     there have been record high costs for cattle feed;
       Whereas, there is a strong sense of financial crisis in the 
     dairy industry;
       Whereas, many dairy farmers have looked to the Federal 
     government for relief because minimum milk prices under the 
     Milk Marketing Orders are established by the Department of 
     Agriculture;
       Whereas, the price of cheese at the National Cheese 
     Exchange in Green Bay, Wisconsin influences milk prices paid 
     to farmers because of its use in the Department of 
     Agriculture's Basic Formula Price under Federal Milk 
     Marketing Orders;
       Whereas, less than one percent of the cheese produced in 
     the United States is sold on the National Cheese Exchange and 
     the Exchange acts as a reference price for as much as 95 
     percent of the commercial bulk cheese sales in the nation;
       Whereas, there has been some concern among dairy producers 
     that the prices at the National Cheese Exchange may have been 
     manipulated downward, benefiting processors at the expense of 
     dairy farmers;
       Whereas, it is in the national interest to ensure that 
     market prices for milk, cheese, and other dairy products are 
     determined by a fair and competitive marketplace; Now, 
     therefore, be it
       Resolved, That it is the Sense of the Senate of the United 
     States that the Secretary of Agriculture should act 
     immediately pursuant to his legal authority to modify the 
     Basic Formula Price for dairy by replacing the National 
     Cheese Exchange as a factor to be considered in setting the 
     Basic Formula Price and to establish in its place an 
     equivalent pricing mechanism more reflective of the actual 
     market conditions for cheese and other dairy products 
     nationally.

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