[Congressional Record Volume 146, Number 25 (Wednesday, March 8, 2000)]
[Senate]
[Page S1325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KOHL (for himself, Mr. Feingold, Mr. Wellstone, Mr. 
        Schumer, and Mr. Santorum):
  S. 2221. A bill to continue for 2000 the Department of Agriculture 
program to provide emergency assistance to dairy producers; to the 
Committee on Agriculture, Nutrition, and Forestry.


                   Financial Relief for Dairy Farmers

  Mr. KOHL. Mr. President, I rise to introduce legislation to help 
relieve the financial crisis in the dairy industry.
  Last fall, milk prices took their steepest dive in history and fell 
to their lowest level in more than two decades.
  This is particularly devastating for farmers in Wisconsin who milk on 
average only about 55 cows. These farmers have particularly tight 
margins and are less able to withstand low milk prices that USDA 
forecasts will continue through the year.
  Dairy farmers continue to call my office in despair. Some farmers 
can't meet their feed bills, even though feed prices remain relatively 
low. Meanwhile, other input costs, like fuel and interest rates, are 
rising. Auctions in the countryside return little to farmers who have 
made the difficult decision to quit dairying; their neighbors can't 
afford even the insanely discounted prices for equipment.
  Are the trials facing farmers markedly different than the difficult 
conditions that other producers have faced over the last several years? 
No. But what is different is the level of assistance that dairy farmers 
have received from the federal government relative to other 
commodities.
  The dairy price support program costs only about $150 million per 
year. That stands in contrast to the more than $14 billion spent in 
AMTA payments and Loan Deficiency Payments provided to other producers 
last year.
  Anticipating a price decline in dairy, Congress provided $325 million 
for dairy market loss payments. Compare that to the $15 billion 
provided to crop producers over the last two years. While milk 
producers are happy for the extra help, most have told me that it 
simply is not enough given. Milk prices fell far lower than 
anticipated. And now we must do more.
  On top of this injustice, Midwest dairy farmers, where much of the 
nation's milk supply is produced, also suffer from lower income 
resulting from the discriminatory pricing under the Federal Milk 
Marketing Order system. Last year, Secretary Glickman attempted to 
restore some fairness to that system by making some modest reforms. But 
this Congress unjustly overturned those reforms while simultaneously 
extending the Northeast Interstate Dairy Compact--a milk price cartel 
which protects producers in the Northeast at the expense of consumers 
and producers outside the cartel.
  I am going to work to repeal the Northeast Dairy Compact and to 
restore some common sense to federal milk pricing. I also will work 
with my colleagues to develop a meaningful and lasting safety net for 
dairy producers.
  But, Mr. President, that will take time. And right now, dairy farmers 
in Wisconsin don't have time. They need relief.
  So, today I am introducing a bill to provide $500 million in direct 
income relief payments to dairy farmers throughout the nation. The 
money is targeted to small scale farms--those least able to withstand 
these wild price fluctuations. I am pleased to be joined by Senators 
Feingold, Specter, Grams, Santorum, and Schumer on this legislation. 
Mr. President, I hope to include this funding in the upcoming 
supplemental appropriations bill.
  This will put money in the pockets of dairy farmers now, when they 
most need it. Not a year from now when many of them will have already 
sold their cows.
  Let me emphasize that this is a national solution to a national 
problem. It is not a regional fix. It does not exclude any dairy farmer 
from participation. And it does not help some at the expense of others. 
It helps all dairy farmers.
  But it is, like last year's funding, merely a bandage to stop the 
bleeding. Dairy farmers everywhere need a meaningful safety net, not 
regional milk cartels. I urge my colleagues who have sought regional 
solutions to depressed dairy farm income to join me in my efforts to 
fight for a new, national dairy policy that will provide both an 
adequate safety net and hope to dairy farmers across the nation.
                                 ______