[Congressional Record Volume 147, Number 112 (Friday, August 3, 2001)]
[Senate]
[Page S8875]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    AGRICULTURAL ECONOMIC ASSISTANCE

  Mr. JEFFORDS. I rise today to voice my frustration about the events 
that unfolded today regarding the Agricultural Economic Assistance Act. 
I am disappointed for one reason. This legislation leaves my farmers 
behind. Of the $5.5 billion in this bill, only a very small amount goes 
to Vermont or any of the farms in our area of the country. Only $1.5 
million out of the $5.5 billion in this package will reach Vermonters. 
That amounts to only about $1,000 per farm.
  Mr. President, 50 percent of the money goes to 10 States. Our dairy 
farmers are the hardest working, most efficient. The compact has no 
Federal cost.
  It is without question that the states in the Northeast are left out.
  During the proceedings on this bill, there was much talk about the 
amount of the overall spending package. As we continue to wrestle with 
budget and spending concerns, I encourage my colleagues to take a look 
at a program that provides assistance and stability for farmers at no 
cost to the federal government, the Northeast Interstate Dairy Compact.
  The Northeast Dairy Compact was established to restore the regulatory 
authority of the six New England states over the New England dairy 
marketplace. This authority, however, must be granted by Congress.
  By gaining the consent of Congress in 1996, the Northeast Dairy 
Compact has allowed the compact commission to regulate milk pricing in 
the region.
  Since July of 1997, when the compact commission first set the Class I 
over-order price at $16.94, the Northeast Dairy Compact has proven to 
be a great success--providing farmers with a fair price for their milk, 
protecting consumers from price spikes, reducing market dependency upon 
milk from a single source, controlling excess supply, and helping to 
preserve rural landscapes by strengthening farm communities.
  Farmers across our Nation face radically different conditions and 
factors of production.
  Differences in climate, transportation, feed, energy, and land value 
validate the need for regional pricing. Compacts allow states to 
address these differences and create a price level that is appropriate 
for producers, processors, retailers and consumers.
  The stability created by the compact pricing mechanism is important 
for several reasons. It guarantees farmers a fair price for their 
product and allows them to plan for the future. Farmers, knowing that 
they can count on a fair price, can allocate money to purchase and 
repair machinery, improve farming practices, and above all, stay in 
business.
  Opponents of compacts argue that compacts leads to overproduction. 
These allegations, however, are unfounded. The Northeast Dairy Compact 
has not led to overproduction during its first 4 years. In fact, during 
2000, the Northeast Dairy Compact states produced 4.7 billion pounds of 
milk, a 0.6 percent reduction from 1999. Since the Northeast Dairy 
Compact has been in effect, milk production in the region has risen by 
just 2.2 percent. Nationally, milk production rose 7.4 percent from 
1997 to 2000. Over this same period, California, the largest milk 
producing state in the country, increased its milk production by 16.9 
percent.
  Originally created as a three-year pilot program, the Northeast Dairy 
Compact has been extremely successful in demonstrating the merits of 
compacts. We no longer need to speculate about the potential effects of 
compacts. We now have the hard evidence--they are good for farmers, 
good for consumers, and good for the environment.
  As has been stated by several of my colleagues today, we, who 
represent the Northeast will do everything in our power to secure the 
survival of our family farms. We look forward to working throughout 
this year to make sure the dairy compact is, again, allowed to show the 
benefits to this Nation of effective farming which results in no cost 
to the Government.

  It is certainly hard for me to understand why we get so much 
criticism. It is the only farm program that doesn't cost the Federal 
Government money, and it is one of the first on some people's lists of 
programs to get rid of. It is entirely unbelievable and 
incomprehensible.
  I yield the floor.
  Mr. DODD. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. DASCHLE. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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