Milk price plan killed House fails to vote on compact renewal

WASHINGTON – Supporters of New England dairy farmers failed Wednesday to get a House vote on renewing the Northeast Dairy Compact, a program that sets minimum prices on milk and other dairy products for six northeastern states.

The controversial debate over the compact pitted House members from across the country against each other regardless of political affiliation as they wrestled with efforts to renew the program as part of the $170 billion Farm Security Act of 2001.

First established in 1997, the Northeast Dairy Compact expired Sept. 30. The program supplements the income of dairy farmers when market prices for milk fall below set prices established to ensure the livelihood of farmers in the region. No federal money is spent on the program, which is funded by the dairy industry.

The compact has served Maine’s dairy farmers well, according to Rep. John Baldacci of Maine, a member of the House Agriculture Committee. During 2000 alone, it provided $4.8 million in assistance to Maine farmers and helped prevent some of the state’s dairies from going under, he said.

“In short, dairy compacts save farms and allow for locally produced milk to reach consumers at a competitive price,” Baldacci argued on the House floor in support of the compact. “Compacts allow for regions to best set their own prices, similar to other programs which delegate pricing authority to state and local levels. Evidence has shown that over the life of the Northeast Dairy Compact, consumers in compact states have seen a reduction in milk prices, while farmers have received more for their milk on average than those in noncompact states.”

However, the program met stiff opposition from lawmakers representing Midwest dairy states who claim the program throws up artificial barriers to interstate commerce and costs farmers in their region money.

Because the dairy compacts are agreements among states, opponents insisted that the House Judiciary Committee first consider the program’s renewal before allowing a vote on the matter. So far, the committee’s chairman, Rep. James Sensenbrenner, R-Wis., steadfastly refuses to allow it through his committee.

Looking to bypass Sensenbrenner, compact supporters have tried to attach amendments to the farm bill to save the program.

“Most people think the farm bill should deal with farm issues,” Rep. Sherwood Boehlert, R-N.Y., said. Noting that the compact is a rare program that does not require federal subsidies, he added, “I have a lot more confidence in the farmers of America than I do in the bureaucrats of Washington.”