IDFA Scores Key Victories in 2005 Congressional Session

For the first time since the Northeast Dairy Compact was introduced in 1994, IDFA ensured that, this past year, there was no new legislation introduced to establish regional dairy compacts. Rather than introducing such regressive milk tax legislation, compact supporters from Northeastern states focused on extending the Milk Income Loss Contract (MILC) program, a subsidy paid to dairy farmers out of the federal treasury rather than by processors.

Dairy issues kept lawmakers busy until the final days of the legislative session, as Congress passed an extension of the MILC program in the Deficit Reduction/Budget Reconciliation Bill only after an exhaustive fight and last-minute deals for votes. The bill ultimately included a pared down, two-year version of MILC with a reduced payment formula. The program was not included in the original House version of the bill, but House Speaker Dennis Hastert (R-IL) instructed negotiators to include it in the final version in order to win the support of some moderate Republicans. Senate opponents of MILC could have killed the entire Budget Reconciliation measure, but ultimately allowed the bill to pass so that overall reductions in mandatory federal spending could be enacted.

"It is unfortunate that Congress extended the MILC program, resulting in the continuation of two dairy subsidy programs that USDA has clearly shown work against each other and hurt the entire industry," said IDFA Senior Vice President Chip Kunde. "The new MILC payment formula lessens the impact somewhat, but more importantly, it indicates that Congress does not consider modifying dairy subsidy programs 'taboo.'"

On another front, IDFA scored a major victory in working with a broad industry coalition to move the Milk Regulatory Equity Act (MREA), a bill to resolve certain regulatory inequities in state and federal milk marketing areas in affected regions of the country. The bill, H.R. 4015, introduced by Representative Devin Nunes (R-CA), garnered bipartisan co-sponsors from across the nation.

"This proposal will level the playing field in western states by closing loopholes that are being unfairly exploited and hurting producers and processors alike," said Kunde. "We have moved this bill farther than it has ever gone in the legislative process and now urge Congress to pass the Milk Regulatory Equity Act early in 2006."

IDFA is working closely with an unprecedented number of local, state and regional producer and processor groups on MREA, including several IDFA member companies, the National Milk Producers Federation, Dairy Institute of California, Alliance of Western Milk Producers, Western United Dairymen, Dairy Farmers of America and United Dairymen of Arizona. The coalition was successful, for the first time ever, in obtaining the unanimous support of the House Agriculture Committee, with the help of Chairman Bob Goodlatte (R-VA). IDFA worked with Senators Jon Kyl (R-AZ), Dianne Feinstein (D-CA), Harry Reid (D-NV) and Saxby Chambliss (R-GA), chairman of the Senate Agriculture Committee, to pass a Senate version of the bill, S. 2120 on December 16. The House is expected to take up the measure when it reconvenes in February.

Earlier in the year, IDFA member involvement was particularly critical in demonstrating support for the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR), which Congress ratified by a razor-thin margin on July 27. IDFA played a major role in the broader agriculture sector's efforts to obtain congressional support for this important trade deal.

Over the course of the congressional session, the IDFA-led Coalition for Nutritional Ingredients — a group of more than 50 taxpayer and consumer organizations, associations and food companies — was successful in thwarting legislative attempts to impose new tariffs on imported milk protein concentrates, casein or caseinates.

IDFA members were also instrumental in helping to support passage of the National Uniformity for Food Act (H.R. 4167) a bill to standardize food warning labels nationally, a longtime priority for the industry. The legislation passed the House Energy and Commerce Committee by a wide margin on December 15.

Throughout the year, IDFA members worked with IDFA staff on a host of important grassroots activities including hosting plant tours for key members of Congress and USDA officials, flying to Washington to meet with legislators on IDFA priority issues; participating in congressional dairy roundtables, and contacting their members of Congress on important industry issues.

"With the active support of member companies, we advanced beneficial legislation and fought against bills that would hurt our businesses," said Kunde. "I believe we have laid substantial groundwork to carry these successes forward this new year and beyond to the 2007 Farm Bill."

For more information, contact the IDFA legislative group at (202) 737-4332.

Posted January 3, 2006