I rise in support of extending the Federal Milk Marketing Order system for one year, and in support of the preservation of small family dairy farms throughout Maine and all of New England. As you are aware, Mr. President, the Farm Bill of 1996 authorized the USDA Secretary to fundamentally revisit the federal Milk Marketing Orders, which is a regulation voluntarily initiated and approved by a majority of producers in a given area. The regulation places requirements on the first buyers or handlers of milk from dairy farmers, such as processors who distribute fluid milk products in a designated marketing area. One of those requirements is that handlers must pay an assigned minimum price according to the use of the milk. Also, a milk order requires that all payments by handlers be pooled and the same average price is paid to individual dairy farmers. On January 30, 1998, the USDA proposed two options to reform differentials, including Option 1-A that closely reflects the current program, which is a market-oriented option for fluid milk prices, and Option 1-B that would be accompanied by transition assistance for dairy farmers. I immediately heard from Maine dairy farmers, who asked for my support for the Option 1-A differential because it is the fairest and most equitable pricing option for them as it stabilizes prices for dairy farmers and ensures that consumers do not pay higher milk prices in the supermarket.
Editor's note · Context
Discussing the Federal Milk Marketing Order system and its impact on dairy farmers.
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