Farm, Nutrition, and Bioenergy Act of 2007

Floor Speech

FARM, NUTRITION, AND BIOENERGY ACT OF 2007 -- (House of Representatives - July 27, 2007)

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Mr. WELCH of Vermont. Mr. Chairman, I want to thank Chairman Peterson and Ranking Member Goodlatte for establishing in the bill the Federal Milk Marketing Order Commission. It's my hope that the commission will go a long way in fixing many of the problems inherent in the current system, and it will lead, hopefully, to a more stable price for milk.

The milk marketing orders, like many of the agricultural pricing programs, almost dates back to the New Deal. The intent is to provide a lifeline, not a lifestyle, and a safety net, not really a subsidy.

But one of the problems with the system is it does not take adequately into account the cost of production. In Vermont, in the last year, in the world of dairy, we had the perfect storm: high grain prices, high fuel costs, terribly bad weather, and very low milk prices.

The purpose of this commission is to allow it, this amendment, to allow the commission to take into account the cost of production.

We must be sure that if dairy farmers, like other members of the agriculture community, are going to be able to pay their bills, the cost of production must be reflected in the pricing program.

Mr. PETERSON of Minnesota. Mr. Chairman, if the gentleman would yield?

Mr. WELCH of Vermont. I yield, yes.

Mr. PETERSON of Minnesota. I want to thank the gentleman from Vermont for bringing up this very important issue. As you know, that version of the farm bill that the House Agriculture Committee reported contains a request for the study of Federal Milk Marketing Orders.

As we began the farm bill process last year, we traveled around the country listening to producers, processors and other members of the dairy industry. What we heard was that the Federal Milk Marketing Order system was in need of reform, and we have taken steps to address that.

The committee bill establishes a system to review this system and report its findings to Congress and the Secretary of Agriculture. The committee hopes and expects that this study will provide information necessary to develop the changes that modernize and rationalize milk marketing regulations in this country.

The committee recognizes the concern that this commission could lead to delay within the Department regarding ongoing efforts to reform the improvement of the Federal Milk Marketing Order system. We do not wish this to be the case and have directed the Secretary to address that concern in the committee substitute.

So, if the gentleman is willing to withdraw his amendment, I would extend an offer to work with him in conference to make sure that his concerns on energy and feed costs are incorporated into the commission study.

Mr. WELCH of Vermont. Mr. Chairman, on behalf of myself and my cosponsor, my friend, Mr. Arcuri from New York, we accept the gracious offer of the chairman.

Mr. Chairman, at this time we would move to withdraw our amendment.

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