Contact: Katherine Ozer (202) 543-5675  Cell: (202) 421-4544

DAIRY FARMERS ACROSS COUNTRY PRAISE INTRODUCTION OF LANDMARK SPECTER-CASEY BILL

Farmers Urge Cost of Production Formula to be Included in Farm Bill

Washington D.C. ( July 9, 2007 ) – The National Family Farm Coalition praised the recent introduction of the Federal Milk Marketing Improvement Act of 2007, S. 1722, by Senator Arlen Specter (R-PA) and Senator Bob Casey (D-PA).  The bill represents one of the first legislative efforts to propose a cost-of-production formula to help distressed dairy farmers without costing taxpayers any money and eliminating the MILC subsidy program.

NFFC’s Dairy Subcommittee has over the past year brought together farmers across the country to address the current crisis in the dairy industry.  2006 was the worst year for dairy farmers since the Great Depression.  In April 2007, Wisconsin dairy farmer Randy Jasper testified before the Senate Agriculture Committee on behalf of NFFC to urgently highlight the need to address cost-of-production issues for dairy farmers facing record input costs and last year’s record low prices.  Hundreds of dairy farmers have gone out of business in the past year, and even with the relatively higher prices recently, rising feed and energy costs means many farmers are still living on the edge and deeply in debt.

Our nation needs a fair and effective system that will ensure a regional, dispersed, safe and resilient milk supply to serve as the backbone of our nation’s food security and rural economy.  “For the first time in history, we are entering an era where the U.S. is a net importer of food.  This is the result of a period where factory farms and agribusiness giants ruled Farm Bill legislation.  The only way to get agriculture back on its feet is to get the farmers a cost of production,” said Paul Rozwadowski, a Wisconsin dairy farmer.

The Federal Milk Marketing Improvement Act proposes:

1.)    All milk produced in the United States will be priced based on the national average cost of production.

2.)    All milk used for manufacturing purposes will be classified as Class II milk.

3.)    The value of Class I milk will be the same across the United States .

4.)    The Class II price will be the Basic Formula Price for ­all markets in the United States .

5.)    Dairy farmers’ prices will be adjusted four times a year.

6.)    All federal and state orders will determine the amount of adjustments for pricing butterfat, etc.

7.)    The proposal allows the USDA to implement a supply management program.  This can only be implemented when the value of exported dairy products equals the value of imported dairy products.

8.)    The proposal does not allow any hauling costs to be charged to dairy farmers.

9.)    The proposal does not allow any make allowance cost to be charged to dairy farmers.

Arden Tewksbury, Pennsylvania dairy farmer and manager of Progressive Agriculture Organization (Pro Ag), said, “This formula would take the roller coaster ride out of milk prices.  The ups and downs in milk prices have been extremely painful to dairy farmers and very confusing for consumers.”

Dairy farmers in other states also expressed their strong and unified support for the Specter-Casey bill.  Dairy farmer Fred Matthews of LaFargeville , New York , said, “Senate bill S. 1722 is a major breakthrough for developing a fair wage to price dairy farmers raw milk.  It is clear to me that dairy farmers in all regions of the country will benefit from the provisions in this bill.”

California dairy farmer Loren Lopes of the California Dairy Campaign expressed his support for the bill, which would have California come under the Federal Milk Marketing Order. “S. 1722 is the only dairy policy today that will give a future to dairy farmers in every state of the union.  The cost of production is the basis for dairy farmers to stay in business.  We drastically need this legislation.  I am a dairy farmer from California and I fully support this bill.”

NFFC applauds the leadership of Senators Specter and Casey for helping America ’s dairy farmers.  This important bill deserves full consideration by the Senate Agriculture Committee.

###

The National Family Farm Coalition (NFFC), founded in 1986, provides a voice for grassroots groups on farm, food, trade and rural economic issues to ensure fair prices for family farmers, safe and healthy food, and vibrant, environmentally sound rural communities here and around the world.  NFFC represents family farm and rural groups in 30 states whose members' face the challenge of the deepening economic recession in rural communities caused primarily by low farm prices and the increasing corporate control of agriculture.  For further information about the organization, call 1-800-639-3276 or visit www.nffc.net.