FOR IMMEDIATE RELEASE: June 10, 1998
CONTACT: Dana Hagerty 202/225-2165
WASHINGTON, DC – U.S. Representative Collin Peterson (DFL-7th District) announced today that USDA has denied a petition to establish a price floor for fluid milk.
"USDA heard the cries of Upper Midwest dairy farmers," Peterson said. "We simply cannot take more inequity in the federal dairy program."
The petition, filed by a large dairy cooperative, would have placed an emergency floor on the basic formula price (BFP), which forms the minimum price dairy farmers receive. The proposal called for the floor on Class I and II milk. According to Peterson, the Upper Midwest has very little Class I and II milk.
"Our farmers would have been hurt by lower prices caused by excess production in other regions," Peterson said. "Not only that, but the proposal would have increased milk costs to consumers, especially low-income Americans, while benefiting the largest dairy farmers.
"While it is important for us to continue to look for ways to help dairy farmers, I cannot support any effort that would hurt our Minnesota dairy farmers."
USDA will continue to work on the long-term reform of milk marketing orders, as required under the 1996 farm bill.