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TAXPAYER GROUP BLASTS LEAHY
FARM PROVISION
Washington, D.C. - The Council for Citizens Against
Government Waste (CCAGW) today blasted Senator Pat Leahy (D-VT.) for
his dairy provision to the farm bill reported by the Senate
Agriculture, Nutrition and Forestry Committee.
The Leahy provision would establish an unprecedented floor
under the Class I (fluid milk) price for milk, to which the Class I
differential must be added, which would raise the price of a gallon
of milk by 10 percent (26 cents). According to Tom Schatz, "simply
put, this is akin to establishing a national dairy compact, which
would impose a milk tax on all Americans."
The provision would also institute a new government subsidy
for dairy farmers by setting up a $300 million a year deficiency
payment program, which would be distributed in direct payments to
dairy farmers based on the amount of milk they produce each
month.
"The Leahy language would increase the cost of milk to
consumers by $1.8 billion annually and constitute a new raid on the
federal treasury," Schatz said. "The greatest financial benefits of
the program would accrue to those dairy farmers least in need. At a
time when many American citizens are struggling with the effects of
a sluggish economy, but dairy farmers are realizing a very
profitable year, this proposal is without merit."
Dairy compacts and other policies that artificially raise
milk prices have proven to be policy failures. While they increase
consumer costs for dairy products and impose heavier burdens on
American taxpayers, they have failed to reverse the decline in the
number of dairy farms.
Schatz urged Congress to support the Crapo motion to strike
the Leahy provision and announced that CCAGW intends to consider the
vote to eliminate this costly and unnecessary dairy scheme for
inclusion it its 2001 Congressional Ratings. Schatz
also stated that CCAGW will urge the President to veto the
farm bill should this language be retained in conference.
CCAGW is the lobbying arm of Citizens Against Government
Waste, the nation's largest taxpayer advocacy group with over one
million members and supporters nationwide. It is a nonpartisan,
nonprofit organization dedicated to eliminating waste, fraud,
mismanagement and abuse in government.
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