[Congressional Record Volume 145, Number 98 (Tuesday, July 13, 1999)]
[Senate]
[Pages S8374-S8375]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KOHL (for himself and Mr. Feingold):
  S. 1354: A bill to provide for the eventual termination of milk 
marketing orders; to the Committee on Agriculture, Nutrition, and 
Forestry.


                       consumer dairy relief act

  Mr. KOHL. Mr. President, today I am introducing the Consumers Dairy 
Relief Act, a bill that will save American consumers $500 million a 
year on their milk, cheese and dairy purchases. This legislation 
terminates the Federal Milk Marketing Orders by the year 2001.
  Consumers are paying far more than necessary for their dairy 
purchases because our current system encourages milk production in high 
cost areas. Our nation's milk pricing laws, which were designed in the 
1930's, are seriously outdated and long overdue to be reformed. Dairy 
farmers in Wisconsin have suffered under the present system for too 
long. Wisconsin loses, 1,500 dairy farmers a year, not because they are 
inefficient, but because a federal law discriminates against them by 
preventing them from competing on a level playing field.
  Opponents of this legislation will tell you that we need to keep the 
present system in order to maintain a fresh milk supply in their 
states. While that may have been true in the 1930's, when we lacked the 
refrigeration technology necessary to store and transport milk, it is 
certainly not true today. We can now easily and safely transport 
perishable milk and cheese products between regions of the United 
States. In fact, the industry has actually perfected the system to such 
a degree that we now export cheese to countries around the world.
  Mr. President, as the United States expands its role in the export 
dairy market and enters into more trade agreements, our domestic 
agricultural policy is coming under intense scrutiny. Another reason to 
eliminate our antiquated milk pricing system is that it will give us 
another negotiating tool to use during the next round of WTO 
discussions scheduled to take place in Seattle this fall.
  Our trading partners are growing increasingly concerned about the 
intervention of the federal government in the pricing of milk. Earlier 
this month, The Dutch Ministry of Agriculture, Nature Management and 
Fisheries said

[[Page S8375]]

they want to put the issue of USDA's Federal Milk Marketing Orders and 
dairy compacts on the table for discussion at the next round of 
Agricultural discussions in Seattle this fall.
  By passing this legislation and reforming our milk pricing laws, we 
can eliminate another hurdle currently in the way of negotiating 
agricultural trade agreements that would open up new markets for our 
farmers.
  Mr. President, if the Senate decides to discuss reforming our milk 
pricing system, we must give serious consideration to eliminating the 
present system. Today I have touched on a few of the reasons we need to 
scrap our current milk pricing system. There are many others, but I 
will save those for another time.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1354

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EVENTUAL TERMINATION OF MILK MARKETING ORDERS.

       (a) Termination.--Notwithstanding the implementation of the 
     final decision for the consolidation and reform of Federal 
     milk marketing orders, as required by section 143 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7253), effective January 1, 2001, section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, is amended by striking paragraphs (5) and (18).
       (b) Prohibition on Subsequent Orders Regarding Milk.--
     Section 8c(2) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(2)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended in the first 
     sentence--
       (1) in subparagraph (A), by striking ``Milk, fruits'' and 
     inserting ``Fruits''; and
       (2) in subparagraph (B), by inserting ``milk,'' after 
     ``honey,''.
       (c) Conforming Amendments.--
       (1) Section 2(3) of the Agricultural Adjustment Act (7 
     U.S.C. 602(3), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended by striking ``, 
     other than milk and its products,''.
       (2) Section 8c of the Agricultural Adjustment Act (7 U.S.C. 
     608c), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (A) in paragraph (6), by striking ``, other than milk and 
     its products,'';
       (B) in paragraph (7)(B), by striking ``(except for milk and 
     cream to be sold for consumption in fluid form)'';
       (C) in paragraph (11)(B), by striking ``Except in the case 
     of milk and its products, orders'' and inserting ``Orders'';
       (D) in paragraph (13)(A), by striking ``, except to a 
     retailer in his capacity as a retailer of milk and its 
     products''; and
       (E) in paragraph (17), by striking the second proviso.
       (3) Section 8d(2) of the Agricultural Adjustment Act (7 
     U.S.C. 608d(2)), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, is amended by 
     striking the second sentence.
       (4) Section 10(b)(2) of the Agricultural Adjustment Act (7 
     U.S.C. 610(b)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (A) by striking clause (i);
       (B) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii), respectively; and
       (C) in the first sentence of clause (i) (as so 
     redesignated), by striking ``other commodity'' and inserting 
     ``commodity''.
       (5) Section 11 of the Agricultural Adjustment Act (7 U.S.C. 
     611), reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, is amended in the first sentence by 
     striking ``and milk, and its products,''.
       (6) Section 715 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 1994 (7 U.S.C. 608d note; Public Law 103-111; 107 Stat. 
     1079), is amended by striking the third proviso.
       (d) Effective Date.--The amendments made by this section 
     take effect on January 1, 2001.
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