[Congressional Record (Bound Edition), Volume 145 (1999), Part 6]
[Extensions of Remarks]
[Page 8388]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   THE DAIRY COMPACT--WHY WE NEED IT

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                          Tuesday, May 4, 1999

  Mr. HOUGHTON. Mr. Speaker, I rise today on behalf of H.R. 1604, a 
bill which would allow New York State farmers to join the New England 
Dairy Compact. The compact is not a panacea for dairy problems, but it 
is a start.
  There are those who argue against it--too restrictive, anti-
competitive, will increase milk prices. Despite the nay-sayers, there 
are many reasons to support this compact, and I support it. There are 
cultural reasons, economic reasons, and an overriding consideration: 
our own farmers want it.
  The current compact in New England was established about two years 
ago. It provides dairy farmers with a steady, predictable floor price 
for their milk. And that is important. Dairy farmers for the most part 
live so close to the line that mild gyrations in the price they receive 
can be lethal.
  How would anyone like to run a business where the price of your 
product in one day can drop 40% and you have no control over it. Your 
product, your quality, your service is better than ever. Through non-
economic sources beyond your control your whole business stands on the 
brink of destitution. 5,600 New York dairy farms went that route in the 
last ten years.
  There are three groups opposed to this life-saving compact.
  First, the large Midwestern producers who in effect control through 
government orders the floor price of liquid milk and cheese.
  Second, the big city political powers who claim that a compact to 
stabilize prices will at the same time increase prices to the poor. 
This has been disproved over and over again.
  Third, the middle men--those who handle, package and distribute the 
raw milk before it reaches retail consumers. While the farmer receives 
the same price for his milk on average as he did 20 years ago--this guy 
has jacked up the price to the consumer in this same period by 35%.
  Everyone has a right to fight for his or her economic interests, but 
not using the government as an accomplice, and not at the expense of 
those who milk the cows and produce the basic product. Something is 
terribly wrong when downstream interests enrich only themselves and 
prey on the vulnerability of smaller family farms. These plus others 
hold in their hands the ability to drive an important part of our 
heritage as well as our food supply to the wall.
  If government is for anything it is to protect those who can't 
protect themselves. This is why I, along with others, am fighting for a 
multi-state Dairy Compact.
  The dairy business could soon be dominated by mega-farms whose only 
claimed advantage is an economy of scale. That's not sufficient reason 
to muscle out others of lesser size whose costs are similar, but whose 
deep pockets are not. If the federal government is going to be in the 
dairy business at all, it better try to serve the many, not the few.
  Is a compact the answer to all the problems in our dairy industry? Of 
course not. But it will help preserve our family producers until a more 
permanent solution can evolve.
  So, the way I see it, a compact benefits farmers and consumers. 
That's why I will fight for its passage.

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