FOR IMMEDIATE RELEASE: January 25, 1996
CONTACT: Dana Hagerty 202/225-2165
WASHINGTON, DC -- Congressman Collin C. Peterson (DFL-7th District) today joined Subcommittee Chairman Steve Gunderson (R-WI) and other Republican and Democratic Members of the House Agriculture Subcommittee on Livestock, Dairy and Poultry to announce that an agreement had been reached on dairy legislation. Also present at the news conference were members of dairy organizations representing every region of the country.
"It's hard to believe that we are here today, all on the same page," Peterson said. "In April when this subcommittee held hearings in Minnesota and across the United States, I wasn't sure we would ever get to this point.
"But now I can say without hesitation that I expect this agreement will get the support of Democrats on the subcommittee, the full committee, and Congress," Peterson continued.
This compromise dairy proposal is projected to increase dairy producer income by $900 million in only the first year of its enactment. And over the seven year period covered by the bill, federal savings on dairy programs will be between $600 to $700 million.
"This is a win for dairy farmers and taxpayers alike," Peterson said. "The agreement before us represents bipartisan and inter-regional compromise."
The bill sets a two-year transition for Federal dairy programs. During this time period, The U.S. Department of Agriculture is granted expedited rulemaking authority and directed to enact several reforms to Federal Milk Marketing Orders, including the consolidation of the current 38 orders into no more than 13 and no less than 8 orders. The proposal would immediately end all budget assessments on dairy producers, currently 10 cents/cwt. The support programs for butter and non-fat dry mild would be eliminated, but the price support on cheese would be retained on $10.35/cwt through 1997 and reduced by 10 cents/cwt per year over the next five years, A recourse loan program would be established for butter, powder and cheese at the cheese support price.
"I hope this legislation will move quickly through Congress," Peterson said. "Minnesota dairy farmers have needed reform to occur in dairy policy for many years. It is my hope this legislation will help move a strong Minnesota dairy industry into the 21st century."