Approved 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.
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’s office 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.
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.
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.
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.
Commissioner
Colon Durrell said he would present a motion on behalf of the Finance Committee
during the New Business section of the agenda.
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.
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 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
Moved to file for audit the May 31, 2001 financial
statement
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.
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.
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)
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.
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.
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.)
Commissioner
Gabe Moquin said the next monthly meeting of the Northeast Dairy Compact
Commission is in Mystic, Connecticut on August 8, 2001.
Chair
Schmidle adjourned the meeting at 2:40 p.m.
Respectfully
submitted,
Douglas
Morris
Secretary