Russ Feingold: “The New York Times editorial states: The price increase [provided in the Compact] would pump perhaps $50 million a year…”

“The New York Times editorial states: The price increase [provided in the Compact] would pump perhaps $50 million a year into the bank accounts of New England dairy farmers. But it would needlessly pummel poor parents by forcing them to spend up to 20 percent more to buy milk. The editorial provides some good advice to Senators who will soon vote on this measure--Senators ought to reject the compact because it needlessly harms children. I think that is pretty good advice, Mr. President. In addition to the ill effects on consumers, the compact erects barriers to keep milk from other States from flowing into the compact region. The Compact requires that lower cost milk produced in surrounding States must receive the higher compact price, through compensatory payments, even if producers in those other States can provide that milk at a lower cost to buyers. When you include transportation costs, any buyer of milk in the compact region would be foolish to acquire milk from outside the compact region. Any unwise buyer who did so would soon be put out of business by their competitors. That producers from noncompact States are free to sell into the compact region, as the supporters claim, is accurate. However, there would be no demand for that milk because of the disincentives the compact creates for its acquisition. While compact supporters claim that any producer in the country will be able to benefit from this, it is illogical to conclude that is true.”