Senate Agriculture and Rural Affairs Committee Encourages Federal Dairy Policy Reform

Asks PA Congressional delegation to support PDA proposal

HARRISBURG – The Pennsylvania Senate Agriculture and Rural Affairs Committee has expressed a strong interest in federal dairy policy reform to members of the state's Congressional delegation, Committee Chairman Mike Brubaker (R-Lancaster) said today. 

Brubaker said the Committee members are requesting consideration of the proposal put forth by the Pennsylvania Department of Agriculture and Secretary Dennis Wolff during the 2007 Federal Farm Bill reauthorization process. They have directed a letter to U.S. Senators Arlen Specter and Bob Casey, as well as Congressman Tim Holden, who is Vice Chairman of the U.S. House Agriculture Committee. 

"Agriculture is the number one industry in the Commonwealth, and dairy is the largest of our agricultural sectors," Brubaker said. "However, in 2006 and 2007, dairy producers have suffered through what has been termed their worst years financially in decades." 

Throughout the statewide series of listening sessions Brubaker's committee has held this year, as well as a hearing on dairy policy on May 22, producers have continually asked for a change in policy governing how milk prices are determined. Few individuals understand the current pricing structure, which Brubaker said is especially of concern to those who receive the milk checks at the end of the month.

"The state Department of Agriculture's proposal would simplify the milk pricing process, and at the same time, create a transparency that has not existed to date," Brubaker said.

The proposal attempts to improve dairy pricing by:

• clarifying the connection between changes in commodity market prices and the milk check;

• improving how Federal Order prices are determined each month;

• creating a producer safety net with a target price approach;

• and capitalizing on the country's position as a leader in global dairy trade.