Baldacci wants dairy farmers to show use of panel’s ideas

AUGUSTA – Gov. John Baldacci wants to see some concrete evidence that Maine’s dairy farmers are taking the recommendations of his 2003 Dairy Task Force to heart before he seriously considers a long-term dairy support program, his top aide said Thursday.

Richard Davies said, “It’s not like it’s one on one – if you don’t do this, you don’t get that. But the governor wants to see evidence that dairy farmers are implementing the methods proposed by the task force.”

Meanwhile, U.S. Sen. Olympia Snowe is seeking assurance that President Bush’s proposal for a U.S.-Australia free-trade agreement will not hurt Maine’s 393 remaining dairy farms.

“Improper treatment of dairy in the U.S.-Australia FTA could concentrate Australia’s exporting focus largely on the U.S., as we are one of the world’s largest and most attractive markets for dairy products,” said Snowe on Wednesday.

The National Milk Producers Federation has estimated that a quarter of America’s dairy farms and as many as 150,000 dairy jobs nationwide could be lost as a result of a FTA with Australia and New Zealand.

“If the U.S. gives Australia significantly increased access to our dairy market, this will greatly undermine milk prices, thwarting federal efforts to support dairy producers and their families,” Snowe said, joining with 31 other state senators in the effort to monitor the dairy impact of any proposal.

While Australia only produces an estimated 2 percent of the world’s milk, it ranks third in terms of world dairy trade, accounting for 17 percent of all dairy exports.

In Maine, it costs more to produce milk than in any other state in the country, said Davies, and the majority of the recommendations of the task force were geared at reducing the cost of production. He said some of them included estate planning, land preservation programs and on-farm efficiency methods.

To gauge just how well, if at all, those methods are working, Davies said Dr. Timothy Dalton – the University of Maine professor who created the industry survey used as a basis for the task force – may be asked to compile a second report.

“The report could look at the ideas put forth by the task force and see how many are being adopted by the dairy farmers,” said Davies.

Meanwhile, to provide immediate relief to struggling farmers, the governor has proposed an amendment to the current supplemental appropriations that would release $2.1 million left over in dairy relief funds from 2003.

“We needed to get that short-term proposal out there for some immediate comfort,” said Davies.

Last week, some members of the Legislature’s Taxation Committee were upset when Baldacci had not completed his dairy recommendations based on the task force.

Concerned that they would not have time to adequately deal with the issue of a proposed milk-handling fee, the committee sought and was granted a time extension from the legislative leadership.

During discussion of the proposal before the Taxation Committee last week, Davies said Baldacci continues to oppose a tax, and Davies urged the committee not to pass the milk-handling fee. The bill proposes placing a temporary fee of 32 cents on each gallon of milk sold in Maine, a fee that would raise more than $13 million in the first 12 months.

The task force recommendation would create a three-tiered support program, which would be funded through the General Fund and offset by the same milk-handling fee.