Possible Dairy Compact Deal on Farm Bill is Roundly Criticized

During Capitol Hill's conference committee debate on the farm bill, Vermont Senators Patrick Leahy (D) and Jim Jeffords (I) may attempt to revive the costly Northeast Dairy Compact, a move strongly opposed by IDFA. Others are also critical of the dairy compact and the behind-the-scenes political dealings that surround this issue. The February 12, 2002, edition of the Wall Street Journal included a blunt editorial, which notes that "some of [the senators] seem to have cut a deal that would soak most of the poor mothers in America."

Entitled "The Cow Palace", the editorial questions why Senators Leahy, Jeffords and Jack Reed (D-RI) recently voted against a farm subsidy payment cap, when the cap would affect mostly the South, and "the answer is that these Northeast liberals appear to have cut a deal" with some Southern senators. Leahy is likely to be on the farm bill conference committee, and it's "a fair bet that he'll offer an amendment to resurrect a dairy compact" during the committee work, notes the editorial. But, Leahy will need more support than he currently has from fellow senators to pass a possible dairy compact amendment. That's when the Southern senators' support will be necessary. "So New Englanders will vote to subsidize rich rice farmers in Mississippi in return for Southerners voting to soak milk drinkers everywhere."

The editorial also reminds its readers that Senate Majority Leader Tom Daschle (D-SD) owes his title to Jeffords, whose party switch last year put the Democrats in control of the Senate. Daschle's "reward" to Jeffords is the $2 billion direct subsidy for dairy farmers in the Senate farm bill. "While Mr. Jeffords' New England produces just 3% of U.S. milk, that region plus a few surrounding states are set to get 25% of the subsidy – $500 million." This political dynamic also includes President Bush: If he signs a farm bill that includes Jeffords' pet project, revival of the dairy compact, "the President will have rewarded him" for bolting from the Republican party.

IDFA encourages its members to contact all House and Senate representatives now in opposition to dairy compacts in the 2002 farm bill. (For a list of expected conferees, members can click here.) For more information, visit the "Legislation" section of the website. ###

Posted: February 19, 2002