Vermont Senators Hail Passage
Of Dairy Provisions in Farm Bill

WASHINGTON (Wed., Feb. 13) - Vermont's two U.S. Senators on Wednesday said they were grateful that dairy provisions were retained in the final version of the Farm Bill, which passed the Senate today in a vote of 58 to 40. Final passage came soon after the Vermont senators and their allies beat back another attempt to remove the safety net provisions for New England dairy farmers.

Sens. Patrick Leahy, D-Vt., and Jim Jeffords, I-Vt., said they now will fight to keep the dairy provisions in the bill as it makes its way through conference committee. The House-passed Farm Bill does not contain a similar dairy program. The Senators said the Senate provisions, if enacted into law, will serve as a bridge toward lasting fair-price protections for dairy farmers.

Under the Senate Farm Bill, dairy farmers will receive the same level of financial support they received under the Northeast Interstate Dairy Compact, which expired last September. Vermont farmers will receive roughly $42 million over the duration of the program, which is expected to be 3 ½ years.

"Our farmers must be assured that they can continue milking their cows without getting milked. These payments will ensure that Vermont farmers are paid a fair price for their product, despite the fluctuations in the market," Jeffords said.

Leahy, who will be one of seven Agriculture Committee conferees on the bill in the upcoming House-Senate conference, said, "The fight for Vermont farmers in this farm bill has been harrowing from the start. Today’s dairy vote was a cliffhanger, but it’s the best news we’ve had in months. The Senate bill ensures Vermont dairy farmers a fair income. It’s a crucial buffer protecting farmers and consumers from gouging by the big processors."

Under the Senate provisions, Vermont dairy farmers will receive payments whenever the price of Class I, fluid milk drops below $16.94 per hundredweight, the exact price that was established under the compact.

The payments will be retroactive to Dec. 1, 2001. In December, the price paid to Vermont farmers for their milk dropped by almost $4 per hundredweight, or 33 cents a gallon.

The Senate Farm Bill allocates $2 billion for dairy provisions. Of that, $500 million will establish a dairy program for twelve Northeast and Mid-Atlantic states. The remaining 38 states will receive $1.5 billion to establish federal payments whenever the average farm milk price for a calender quarter is below the average price for the same quarter during the previous five years.

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