Draft
Minutes
Northeast Dairy Compact Commission
Regular Monthly Meeting
July 9, 2001, Merry Manor Inn, South
Portland, Maine
Commissioners in
Attendance:
RI:Al
Bettencourt, Aaron Briggs, Ron Newman and Peter Petrone
MA:Gordon
Cook and Jay Healy
VT:Jacques
Couture, Andy Dykstra, Harold Howrigan, Millicent Rooney and Robert Starr
NH:Powell
Cabot, Debora Erb and Douglas Morris
ME:Colon
Durrell, Fred Hardy, Stan Millay and Robert Spear
CT:Robert
Jacquier, Gabe Moquin, Neil Marcus and Mae Schmidle
Commission Staff
in Attendance:
Daniel Smith, Executive
Director; Thomas Lehner, Staff Counsel; Carmen Ross, Regulations Administrator;
Amy Mandeville, Public Information Administrator
Chair Mae Schmidle
called the meeting to order at 10:05 a.m.
I. Presentations
by Maine Congressional Delegation
Congressman
Thomas Allen discussed the Dairy Compact and the role of dairy farming
in Maine.
(Statement
attached)
Senator
Susan Collins pledged her full support to the Compact.
(Statement
attached)
Congressman
John Baldacci spoke in support of the Compact.
(Statement
attached)
Ms.
Ginny Worrest, from the Washington, D.C. office of Senator Snowe, read
a letter sent by the Senator in support of the Compact.
(Letter
attached)
Commissioner
Robert Spear spoke on behalf of Maine Governor Angus King, explaining that
Governor King was unable to attend the meeting as planned due to an unexpected
invitation to accompany President George W. Bush to the White House. Spear
said Governor King, a supporter of the Compact, felt he could better serve
the Compact by discussing it with President Bush rather than attending
the meeting. Governor King sent his regrets at being unable to attend the
meeting.
Commissioner
Neil Marcus asked the Congressional Delegation if there was any chance
during the reauthorization process that the Northeast Dairy Compact might
be separated from the issue of other states seeking Congressional authorization
for regional dairy compacts. Senator Collins said it strengthens the chance
of reauthorization to have more states involved, as more Senators and Representatives
are likely to support the legislation in order to support a greater number
of states, including their home states. Congressman Allen said he agreed
with Senator Collins that numbers would strengthen the push for reauthorization.
Commissioner
Robert Starr asked why there are only 39 co-sponsors for the Compact in
the Senate when 25 states have passed legislation authorizing compacts.
Senator Collins said sometimes Senators decide not to co-sponsor a bill
even if they ultimately plan to vote for it. Ms. Worrest noted that all
New England, New York and Pennsylvania Senators support the Compact.
Commissioner
Fred Hardy thanked the Maine Delegation for attending the meeting, and
for their persuasive arguments in support of the Compact.
Commissioner
Jay Healy asked how Senator Jeffords’ party switch will affect reauthorization,
and if either of the Maine Senators intends to now take a more active role
in the reauthorization process. He stated his concern that the Compact
may be affected by politics unrelated to the Compact. Congressman Allen
said having a larger group of states and sponsors involved in Compact reauthorization
and the authorization of other regional compacts helps to dilute any negative
effect of Senator Jeffords’ party switch.Congressman
Allen said the Compact has many elements, such as the Supply Management
Program, which better serve the market in terms of producers, consumers
and processors than the Federal system does.
Commissioner
Aaron Briggs thanked the Maine Delegation for attending the meeting.
New
York Dairy Farmer Ken Dibbell said the solution to reauthorization is to
negotiate with Midwest legislators. He said the problems in the Midwest
are the same as those in the Northeast.
Commissioner
Leon Graves thanked the members of the delegation for their attendance
and leadership and asked for the timeline for the announcement of President
Bush’s dairy policy. Senator Collins said she doesn’t know what the timing
is, and said that President Bush expressed concerns about the Compact during
his election campaign. Senator Collins said Compact supporters in the Senate
would be looking for vehicles to attach the Compact to. Ms. Worrest said
she hasn’t yet heard when the administration will present its dairy policy,
but said Senator Snowe’soffice has
emphasized the Compact deadline.
Bob
Wellington from Agri-Mark asked if Congress is looking at the degree of
power concentration among milk processors. Congressman Baldacci said the
House Agriculture Committee did have a hearing about the power concentration
of processors as well as grain suppliers and other sectors, but did not
discuss the Compact as a counter measure. He said it is a bi-partisan concern
in the agriculture sector.
Executive
Director Daniel Smith thanked the Maine Delegation, as did Chair Schmidle.
II. Other
Communications
Chair
Schmidle presented the Joint Resolution Memorializing the Congress of
the United States to Reauthorize the Northeast Interstate Dairy Compact,
signed by all of the legislators in the state of Maine.
III. Introduction
of Guests
Chair
Schmidle introduced Maine Senators Michael Michaud, Richard Bennett and
John Nutting and Representatives Carol Weston and Arlan Jodrey.
Other
Guests: Brian Wright, Maine dairy farmer; Carl Peterson, Agri-Mark; Ken
Dibbell, New York dairy farmer; Erik Rasmussen, USDA Market Administrator;
Pat Green, New England Country Folks Newspaper; Maggie Murphy, Assistant
Director, New York State Agriculture Committee; Bob Wellington, Agri-Mark;
Harold and Joyce Larrabee, Maine dairy farmers; Richard Johnson, Maine
dairy farmer; Lee and Charlotte Bosworth, Maine dairy farmers; Russ Porter,
Maine dairy farmer; John Blake, H.P. Hood; Mike Suever, H.P. Hood; Tom
Brigham, Oakhurst Dairy; Ira Chamberlain, Maine dairy farmer; Kelly Fuerstenberg,
New England Farmer; Bill Bell, feed industry representative; Gail and Ray
Christensen, New York State Department of Agriculture and Markets; Cheryl
Leeman, Mayor of Portland, Maine; Andrew Leehas, Senator Snowe’s office;
Caroline Briggs; Jon Olson, Maine Farm Bureau; Wayne Hapworth, Boston Milk;
Victor Bissell, Jr., Maine dairy farmer; Lee Hathwith, Maine dairy farmer;
Robert Tardy, former Maine legislator; Lee Grampon, dairy farmer; Steve
Watrous, Allied Federated Cooperatives; Jonas and Melloni Worthen, Agri-Mark;
Sharon Mack, Bangor Daily News; Blyss and Jamie Thurston, Maine dairy farmer;
Shelley Doak, Maine Department of Agriculture; Matthew Algeo, Maine Public
Radio; Walter Whitcomb, former Maine state Representative; Peter Curra,
Linda Smith Dyer, former chair of the Northeast Dairy Compact Commission;
Michael V. Saxl, Speaker of the Maine House.
IV. Consideration
of the Minutes of June 6, 2001
The
minutes were revised per the recommendation of Commissioner Gordon Cook
to reflect he said the price of cheese will likely affect the price of
milk.
Motion 7/9-1 by Andy Dykstra
with revisions/Second by Fred Hardy
Moved to accept the minutes of June
6, 2001 monthly meeting with
revision to reflect that Commissioner
Gordon Cook said the
price of cheese may affect the price
of milk.
MOTION PASSED 6 TO O
V. Financial
Statement: Month Ending May 31, 2001
Commissioner
Colon Durrell said he would present a motion on behalf of the Finance Committee
during the New Business section of the agenda.
VI. Reports
A.
Executive
Director’s Report
Mr.
Smith said his work has been in two parts this month: organizing the July
meeting and assembling the Congressional Impact Report.
Mr.
Smith said Senator Leahy of the Senate Judiciary Committee has scheduled
a hearing during which Mr. Smith will present the Congressional Impact
Report.
Mr.
Smith said the Organic Cow case was argued in Federal court.
Mr.
Smith said the budget changes approved by the Finance Committee has allowed
work on the Impact Analysis to proceed smoothly.
B.
Committee
on Administration
Commissioner
Peter Petrone said the Committee would make two motions during the New
Business portion of the agenda.
C.
Committee
on Regulations and Rulemaking
Commissioner
Robert Starr said the committee intended to make a motion regarding the
Supply Management program during the New Business portion of the agenda.
VII. New
Business
A. Recommendations
of Committee on Administration
Motion 7/9-2 by Peter Petrone
on behalf of the Committee on Administration
Moved to approve payment of an invoice
from the Allbee
Consulting Group in the amount of
$11,300
MOTION PASSED 6 TO 0
Motion 7/9-3 by Peter Petrone on
behalf of the Committee on Administration
Moved to approve payment of the July
2000
Milk Market Administrator’s bill
MOTION PASSED 6 TO 0
Motion 7/9-4 by Colon Durrell on
behalf of the Committee on Finance
Moved to file for audit the May 31,
2001 financial statement
MOTION PASSED 6 TO 0
C.Recommendation
of Committee on Regulations and
Rulemaking
Motion 7/9-5 by Robert Starr on
behalf of the Committee on Regulations and Rulemaking
Moved the Commission adopt the general
guidelines for treating producers similarly to how the cooperatives and
handlers treat them as payroll entities; and
Authorize the Committee
on Regulations and Rulemaking to evaluate particular cases upon referral
from the staff and to make exceptions to the general guideline for unusual
circumstances based on fairness. Members of the Committee who are eligible
for a refund under the program will not participate in this process. Members
will recuse themselves from consideration of application claims from their
states.
MOTION PASSED 6 TO 0
Commissioner Andy
Dykstra asked if farmers who over-produced needed to send in paperwork
for the Supply Management Program. Mr. Tom Lehner said they should not.
VIII. Informational
Presentations
A.
The
Dairy Compact and the Legislative Process in Maine
Commissioner Robert
Spear introduced Senator Michael Michaud, President of the Maine Senate.
Senator Michaud said he was pleased to join others in support of the Compact.
He said that on June 18, the Maine legislature unanimously approved a joint
resolution urging Congress to re-approve the Compact. He said the Compact
has helped keep Maine dairy farmers in business, thus encouraging a steady
supply of local dairy products, open space and a superior quality of life.
He referred to agriculture as a bi-partisan issue.
Senator Richard A.
Bennett, President Pro Tempore, spoke of the support in the Maine Senate
for the Compact, and dairy farming’s place in the Maine economy.
(Statement attached)
Cheryl A. Leeman,
Mayor for the city of Portland, spoke of the commitment Maine dairy farmers
have to the industry, and of the benefit to consumers of the Compact.
(Statement attached)
2001 Recognition Awards
On behalf of the
Commission, Commissioner Spear Presented 2001 Recognition Awards to Senator
John Nutting, Representative Robert Tardy, Representative Walter Whitcomb,
Peter Curra and Linda Smith Dyer. Governor Angus King and Michael Wiers
were not present to accept their awards.
Public Participation
Mr. Dibbell said
farmers could survive comfortably from farm income alone if the Compact
payment was doubled. Mr. Dibbell said he is looking to New York State to
price Class 1 milk should the Compact not be re-approved. He advocates
pricing milk relative to the cost of production.
-
The Dairy Compact and the Legislative
Process in Maine (cont.)
Maine
Speaker of the House Michael Saxl said the Dairy Compact is essential in
Maine and New England primarily because it helps assure the availability
of fresh, wholesome milk.
(Statement
attached)
Senator
Nutting, one of two active farmers in the Maine legislature, said he believes
the Maine Vendors Fee gave the Northeast the courage to go ahead with the
Northeast Dairy Compact Commission. He said the debate about reauthorization
is really a debate about what percentage of the consumers’ food dollar
the farmer gets. He said the profit margin of supermarkets has grown while
the farmers’ margins continue to shrink. He said his fear for the Compact
in the future is that if supermarkets continue to increase their margin
and blame it on the Compact, there may be a negative reaction to the Compact
and a boycott on milk.
Representative
Carol Weston commented on the Joint Resolution, which was signed by 100
percent of the Maine legislature.
Former
Representative Walter Whitcomb referred to the Compact as an ingenious
way to offset low prices without spending billions of public dollars.
(Statement
attached)
B.Maine
Processors’ Assessment of the Compact
Tom
Brigham, Chief Financial Officer of Oakhurst Dairy, said Oakhurst Dairy
is not opposed to the extension of the Compact and that the prices have
not become high enough to affect consumption, nor has the dairy been put
at economic disadvantage with regard to competition.
(Statement
attached)
Mike
Suever, Vice President of Milk Procurement and Processing at H.P. Hood,
spoke of H.P. Hood and milk processing in general.
(Statement
attached)
C.Maine
Agriculture and Dairy Farmers
William
Bell, Executive Director of the New England Grain and Feed Council and
Director of the Eastern Federation of Feed Merchants spoke of the tenuous
nature of agriculture, and how entire industries can be greatly diminished
over the space of a few years.
(Statement
attached)
Harold
Larrabee, Former Agri-Mark director and dairy farmer, discussed the Compact
from the perspective of a working farmer.
(Statement
attached)
Jon
Olson, Executive Secretary of the Maine Farm Bureau, discussed the importance
of dairy farming and of the Compact.
(Statement
attached.)
IX. Announcements:
Opportunity for individual state comments
Commissioner
Gabe Moquin said the next monthly meeting of the Northeast Dairy Compact
Commission is in Mystic, Connecticut on August 8, 2001.
X. Adjournment
Chair
Schmidle adjourned the meeting at 2:40 p.m.
Respectfully
submitted,
Douglas
Morris
Secretary
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