[Congressional Record Volume 143, Number 85 (Wednesday, June 18, 1997)]
[Senate]
[Page S5939]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  FAIRNESS IN AMERICA'S DAIRY INDUSTRY

 Mr. ABRAHAM. Mr. President, I rise today to speak once again 
of one of the greatest impediments to a free market system for U.S. 
dairy: the Northeast Interstate Dairy Compact.
  The compact as approved by Secretary Glickman permits six States in 
the New England area to set the minimum price paid to dairy producers 
above the minimum price guaranteed by the federal milk marketing order 
system. I believe this type of artificial price increase will 
inevitably lead to an overproduction of milk in the New England area. 
Unfortunately, this may serve to further reduce milk prices paid to 
dairy farmers in Michigan and in other regions of the country. 
Subsidizing an already subsidized industry is totally unnecessary and, 
in my opinion, creates a dangerous precedent in allowing regions or 
States to set up artificial trade barriers. This seems to contradict 
the intention of last year's freedom to farm bill: removing price 
controls and taking Government out of farming.
  I supported the freedom to farm bill because it eliminates 
agriculture subsidies and gives American farmers the ability to choose 
which crops to grow. This bill was of paramount importance to the 
promotion of free markets in the global economy for this Nation's 
agriculture producers. I was disheartened when the Northeast interstate 
dairy compact slipped into the farm bill conference report at the last 
moment. It is my hope that Congress will correct this flaw and move 
U.S. agriculture one step closer to establishing a true market 
economy.

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