Agriculture panel hears dairy bills

AUGUSTA – A number of bills that would affect the pricing and processing of dairy products got the attention Monday of the Legislature’s Agriculture, Conservation and Forestry Committee.

LD 1432, which would reinstate a milk-handling fee, generated the most discussion and surprisingly was not supported by the Maine Dairy Industry Association.

During an Internet broadcast of the hearing, Fred Hardy of the MDIA testified that although the bill is well-intentioned, it does not accomplish its goal of helping farmers.

Hardy said the fee is an arbitrary number that will be collected, regardless of need.

“It seems like a nightmare to me,” he said. “I’m not willing to let a milk tax be used for nonagricultural or nonfarmer price supports. It should not be used as a cash cow to build the General Fund.”

Hardy said that existing dairy-support programs, put in place over the last two years by Gov. John Baldacci, appear to be stabilizing the industry.

Deputy Agriculture Commissioner Ned Porter told the committee that between January and September 2003, a total of $3 million in direct payments have been made by the state to dairy farmers. He said there is $900,000 left in the fund and about $322,000 is expected to be spent through the end of this year. The remaining money will be carried over into 2006 to continue the assistance program.

The bill, sponsored by Rep. Arthur Lerman, D-Augusta, would re-establish the milk handling fee, which was in effect in 1995 and 1996, at the rate of 5 cents per quart, or 20 cents per gallon. The fee would be paid on a monthly basis by the wholesale or retail handlers. Proceeds of the fee would go in the state’s General Fund and would not be dedicated to any particular purpose. The one exception is that $1 million annually would be appropriated to the Farms for Maine’s Future Fund.

Other dairy bills heard by the committee Monday included:

. LD 1070, sponsored by Rep. John Piotti, D-Unity. Piotti’s bill would allow a milk producer to choose which month that producer would begin receiving state subsidy payments.

. LD 842, sponsored by Sen. Peter Mills, R-Cornville. The purpose of the bill is to prevent price gouging by prohibiting the sale of fluid milk for “an unconscionably excessive price.” It would allow the Maine Milk Commission to investigate any cases of suspected gouging.

. LD 1426, a Department of Agriculture bill that clarifies the regulations for sanitation, inspection and food production of artisan cheeses.

A tentative date for work sessions on the dairy bills is 9 a.m. Wednesday, April 27.