FOR IMMEDIATE RELEASE: June 16, 1998
CONTACT: Dana Hagerty 202/225-2165
WASHINGTON, DC – Congressman Collin C. Peterson (DFL-7th District) announced today that efforts to prevent the House of Representatives from implementing Option 1a, a dairy reform plan that would continue the bias against Minnesota dairy farmers, were successful.
"Representatives Solomon and Livingston, Chairmen of the Rules and Appropriations Committees, threatened to legislate Option 1a by putting it in an appropriations bill," Peterson said. "In fact, they had collected over 230 signatures from other House Members and could have succeeded with any vote on this issue."
Peterson and Members of the House Leadership worked to craft a compromise, thereby avoiding a possible vote and a sure loss for the Upper Midwest because of the lack of congressional votes from our region.
According to Peterson, the plan now is to simply delay the reform process that is currently underway at the U.S. Department of Agriculture. The delay will prevent Northeast and Southeast interests from dictating the direction of the reform.
"It appears that we've dodged the bullet in the House," said Lee Johnston, President of Minnesota Milk Producers Association. "We must now turn our attention to the Senate and the threat of dairy compact expansions. Compacts run completely counter to the philosophy of the Minnesota Milk Producers by lowering milk prices in our area."
Peterson believes that the difference between Option 1a and 1b dairy reform plans will have a minor impact on the Upper Midwest, compared with the effects of increased regional compacts. "Compacts in the Northeast and the Southeast will further fracture our dairy industry. In the Upper Midwest, our region will not benefit from a compact and is hurt by balkanization in the rest of the country." Peterson said. "Our region will suffer as a result of surplus fluid milk from compacts flooding the manufacturing milk market. Because our prices are linked closely to this market, compacts take money out of our dairy farmers' pockets. Senators and other dairy leaders from the Upper Midwest must make the defeat of compacts a top priority."
"Dairy compacts are barriers to free trade between the states of this nation," said Mark Furth, North Central Associated Milk Producers Inc. (AMPI). "They will become most devastating to the Upper Midwest dairy industry if they spread."
Congress is expected to continue consideration of dairy reform and compacts through the appropriations process and in the Senate Judiciary Committee.