[Congressional Record Volume 145, Number 66 (Monday, May 10, 1999)]
[Extensions of Remarks]
[Page E907]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     PROTECT KENTUCKY DAIRY FARMERS

                                 ______
                                 

                             HON. KEN LUCAS

                              of kentucky

                    in the house of representatives

                          Monday, May 10, 1999

  Mr. LUCAS of Kentucky. Mr. Speaker, I rise today in strong support of 
our nation's dairy farmers. In my home state, Kentucky farmers are 
experiencing price volatility in all commodities from hogs to tobacco 
and dairy. When dairy farmers are hurt, it has a multiplying effect on 
the community. We have an opportunity here in Congress to provide 
stability to our dairy farmers. We can do this by ratifying the 
Southern Dairy Compact.
  Already in Kentucky, the General Assembly passed legislation 
authorizing Kentucky to enter the Southern Dairy Compact and I am 
pleased to support federal legislation that authorizes the Compact. 
Because of fluctuating milk prices, Kentucky has lost almost one dairy 
operation per day in the last two years. Just this year, the BFP (Base 
Formula Price) for April milk fell by more than $7 per 100 weight. If 
ever there was a time to protect our dairy farmers and consumers from 
fluctuation in fluid milk prices, it is now. H.R. 1604 would provide a 
safety net for dairy farmers and their families and allows for the 
establishment of a pricing mechanism for fluid milk sold in the region. 
Ratification of the Dairy Compact will give our dairy farmers the tools 
they need to survive and prosper. It will reduce the instability in 
milk prices, which has hurt both consumers and dairy farmers alike.
  Another issue that has a major impact on our dairy farms is the 
recent announcement by the Administration of the final rule on the 
Federal Milk Marketing Order reform. These reforms were directed as 
part of the 1996 Farm Bill. Milk marketing orders classify milk by use, 
set minimum prices that handlers must pay for each class of milk, and 
provide for paying average prices to all dairy farmers who supply a 
particular region.
  In Kentucky, our dairy farmers already face economic pressures. Our 
milk is coming from fewer farms. In fact, there has been a 26 percent 
decline in dairy operations from 1993-1999. Unfortunately, the plan 
that the Administration proposed ignores what 46 of 48 states prefer. 
This is why I support Option 1A and have cosponsored a bill that would 
legislate this reform, H.R. 1402. Kentucky produces a high volume of 
Class I, fluid milk. I believe Option 1A is the best choice to 
guarantee our consumers an adequate supply of fresh, wholesome milk. 
Our farmers should not have to spend their time figuring out a complex 
system of milk prices, when instead they could be out working on their 
farm. Option 1A would reduce volatility of the dairy market and assure 
that there will be enough fresh milk in all markets of our nation.
  With over 2000 dairy farms in Kentucky, our neighbors, families and 
communities are counting on us to pass these important pieces of 
legislation. Now is the time to help our farmers.

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