Jeff Bingaman: “I do not know of any other farm program that favors one region to this extent and has such a dramatic disparity in the…”

“I do not know of any other farm program that favors one region to this extent and has such a dramatic disparity in the use of taxpayers' dollars. In this case, one region will receive 25 percent of the Federal payments, though it produces less than 18 percent of the Nation's milk. Moreover, in one region, farmers are guaranteed a price of nearly $17 per hundredweight, while prices elsewhere are based on market rates and undoubtedly will be substantially lower. In my view, this is not a balanced program. In addition, I am concerned that indirect payment schemes, such as that proposed here, would distort the market by encouraging overproduction. I know that is a point the Senator from Idaho made in his remarks. Overproduction drives down the prices that farmers receive for their milk. When there is overproduction, the Government will step in and purchase surplus dairy products in the form of cheese, butter, and nonfat dry milk. We simply have not had the time to digest properly the dramatic new proposal and to make sure we know the implications of this new proposed scheme. I do believe a market-oriented policy that includes a minimum dairy price support program and the Federal milk marketing orders is the basic approach we need for national dairy policy. These are the programs that are currently in place. This amendment would simply ensure that these programs continue.”