[Congressional Record Volume 146, Number 100 (Thursday, July 27, 2000)]
[House]
[Page H7195]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             NATIONAL FAMILY FARM DAIRY EQUITY ACT OF 2000

  The SPEAKER pro tempore (Mr. Whitfield). Under a previous order of 
the House, the gentleman from Wisconsin (Mr. Kind) is recognized for 5 
minutes.
  Mr. KIND. Mr. Speaker, today I am pleased to join the gentleman from 
New York (Mr. Houghton), the gentleman from Vermont (Mr. Sanders), and 
the gentleman from Maine (Mr. Baldacci) in introducing the National 
Family Farm Dairy Equity Act of 2000. This legislation will provide 
countercyclical dairy payments to our Nation's hard-pressed area 
farmers when the market price falls below $12.50 per hundredweight for 
milk. As we all know, dairy has been a highly controversial political 
issue in this Chamber, oftentimes pitting region against region and 
farmer against farmer regardless of where they are producing in this 
country. It is time we end this political regional fight and bring our 
family farmers together with a national approach.
  Despite the well-intentioned regional disputes, one thing is clear 
and indisputable: family dairy farms across the Nation are hurting with 
prices at over 20-year lows. Thousands of family farmers are forced out 
of business each year and our rural communities in all regions suffer 
as well. We are losing four to five family dairy farms a day in the 
State of Wisconsin alone under these conditions.
  In fact, the price for Class III milk, milk manufactured for cheese, 
has been less than $10 per hundredweight since the beginning of this 
year. This rock-bottom price has had a devastating effect on family 
farmers in my home State of Wisconsin, America's dairyland. Despite the 
disastrously low prices that are plaguing our family farmers, dairy is 
a stepsister to the other agriculture commodity programs. Unlike wheat 
and feed grains, which received the lion's share of the $22 billion of 
emergency relief over the past two years, dairy has received a paltry 
1.5 percent of this sum, or roughly $325 million.
  While this assistance has been appreciated by many within our dairy 
industry, it is far from a panacea. Instead of being constant, these 
payments are subject to political pressure and the whims and demands of 
the appropriators in Congress.
  The legislation we have introduced today is quite simple. It provides 
for greater income from dairy production by creating a $12.50 per-
hundredweight target price for all classes of milk. But this 
legislation is market reflecting; it is not market distorting. 
Moreover, this legislation makes the dairy program more consistent with 
Federal programs for other commodities, similar to the loan deficiency 
payment which is currently applied to wheat and feed grains, which is 
strongly supported by Members from both political parties.
  Dairy farmers will receive payments only when the market price falls 
below this certain target price. Hence, in good times when the prices 
are greater than $12.50 per hundredweight, producers will not receive 
any payment. In times of poor prices, the size of the payment will be 
linked to the difference between the target price and the market price. 
Payments would be made monthly, not annually, as is the case under the 
dairy transition payment.
  This legislation targets Federal assistance to medium-size family 
farms. Specifically, under this tripartisan national bill, producers 
would receive assistance up to the first 2.6 million pounds of milk 
produced annually, reflective of milk produced by approximately 150 
cows on a farm. Unlike past and current agricultural programs, 
producers would not receive financial assistance if they increased 
production. Also, new entrants would be eligible to participate.
  Healthy, vibrant family dairy farms are vital economic, social, and 
cultural resources that we have but are now at risk. Sadly, this Nation 
takes this resource for granted and fails to fully appreciate the vital 
role that dairy farmers play in every consumer's daily life. Dairy is 
an important part of our economy. If we fail to safeguard this vital 
resource entering the new century, America risks losing the family 
dairy farms that have made us strong. My legislation safeguards this 
precious resource and this honorable way of life.
  Mr. Speaker, as Congress begins to consider alternatives for its next 
farm bill, I believe the National Family Farm Dairy Equity Act is a 
right step to provide a safety net for America's dairy families who 
have experienced so much financial hardship due to misguided Federal 
policies.
  I look forward to working with my colleagues on efforts to assist our 
Nation's hard-working dairy farmers.

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