Statement of Senator James Jeffords, Monthly Meeting of the Northeast Dairy Compact Commission, April 11, 2001

This is an important time for all of us, particularly as we look forward to the reauthorization of the Dairy Compact. I just can’t tell you how well the delegation has been working and I’d like to particularly commend Congressman Sanders for his efforts because the critical area is the House and getting a sufficient number of votes and that is no easy task I can tell you, having been there for many years. If we prevail in the House, then that is going to be an incredible move forward. I am confident that the way is going right now we are going to prevail.

The Senate and I are working together and doing all we can. This is a very confused year, not only with the problem sometimes of getting things done, but also the opportunity to get a lot of things done. I am confident now of the work that is being done, and that we will also be successful in the Senate. This month marks the fifth anniversary of the 1996 Farm Bill Authorization for the Northeast Dairy Compact. It is a good time to reflect on the tremendous success of the Compact and plan for the pending fight in Congress to reauthorize and extend the Northeast Compact and ratify a southern dairy compact.

It is not often that Federal legislation results in such clear and immediate success. Since its inception in 1997 the Compact pricing mechanism has reduced the volatility of milk prices and provided stability for our rural communities. Compact payments have helped farmers stay in business and plan for the future while consumers and processors have enjoyed the benefits of a local supply of fresh milk. As you know, since 1997 the Commission has distributed $140 million to 4,000 farmers in New England. These payments, made at no cost to the government, not only help farmers, but the entire economic structure. This success can be attributed to a large measure to the Compact Commission’s leadership and watchful eye. I continue to be impressed by the way in which Commission members from six states work together to represent the interests of consumers, producers, processors and retailers. It is a true testament to members of the Commission, staff and Executive Director Dan Smith.

I am pleased by the Commission’s ability to reach consensus on development and administration of the Supply Management Program. I firmly believe that supply management must be included to ensure that regulation of the marketplace does not prompt excessive levels of production. This in turn helps to reduce the milk price volatility. For this program to function effectively, it is critical that producers recognize that the benefits of supply management outweigh the benefits of over-production. I was pleased to see the withholding amount set at 7.5 cents per hundredweight rather than the 5 cents that was initially proposed. I think this will be very helpful. The current supply management program is a good start and the Commission should monitor the results very closely to determine if a stronger program may be warranted in the future. This will be vital to the long-term success of the Compact – the one we have now and the one I know we’re going to have in the future.

We all know that New York is key to the operation of the regulation, and it is so important that it be added to the Northeast Compact. We also know of its value to New York. They have received 30 percent of the Compact money, close to $50 million. I look forward to having New York’s Congressional Delegation standing shoulder to shoulder with Vermont as we work toward New York getting into our Compact.

As you all know, the Compact expires on September 30. During the next five and a half months, we will be working in Congress to achieve the reauthorization of the Northeast Dairy Compact. We will also be working very hard to ratify the Southern Compact. As in years past we will face strong opposition from the upper Midwest. I am encouraged, however, by the work that Bob Glade of the State’s Ratification Committee and Andrew Meyer of the Governor’s Council for Interstate Compacts are doing to elicit support from these states. Working with Senator Leahy and Congressman Sanders and a broad bi-partisan coalition, we will do all we can to preserve the Compact. We have fought this battle before, and we have won, and we will win again. Thank you very much, and I look forward to working with you. I’m going to be doing all I can, as you know, to make sure that not only do we have the wonderful opportunity of this Compact, but we share it with all of the rest of the country.