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New York Members of Congress Reintroduce National Dairy Equity Act In an effort to revive the failed Northeast Dairy Compact while retaining the Milk Income Loss Contract Program (MILC), Reps. Thomas Reynolds (R-NY), Kirsten Gillibrand (D-NY) and John McHugh (R-NY) last week introduced the National Dairy Equity Act (NDEA) of 2007 (H.R. 2766). IDFA strongly opposes this bill as a failed idea of the past that would result in decreased milk consumption and create inter-regional milk pricing disadvantages that would treat producers and processors unfairly in certain states.The bill would allow multi-state regional compacts to impose over-order premiums on top of Federal Milk Marketing Order Class I prices. All regulated processors in the region would be required to pay the over-order prices to the U.S. Department of Agriculture (USDA), and handlers who bring Class I milk into the region would be required to make similar payments. The funds would be used to make equal payments to all milk producers in the covered regions. By extending the MILC program, the bill would allow the producers the option of accepting either MILC payments or payments generated from the processor premiums or "tax." "It is disappointing that these legislators chose to embrace the failed Northeast Dairy Compact," said Chip Kunde, IDFA senior vice president. "Because of high feed prices and strong international demand for U.S. dairy products, the price of milk has risen for consumers around the country. Now these legislators want to impose an unwanted consumer tax on milk and spread regional dairy cartels across the country." IDFA believes that NDEA, like the compacts before it, would lead to higher prices for milk to consumers, which hit low-income consumers disproportionately hard. The act would amount to a "regressive tax" on milk, raising the costs of food and nutrition programs. "A lot of good dairy policy ideas are on the table in this Farm Bill, but this bill would move the industry backwards. Congress should reject it," Kunde concluded.
Posted June 25, 2007
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