Reynolds Introduces Legislation to Protect Western New York Dairy Farmers

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Reynolds Introduces Legislation to Protect Western New York Dairy Farmers

Congressman Thomas M. Reynolds (R-Clarence) today introduced the National Dairy Equity Act (NDEA), a bill that will aid and protect dairy farmers in Western New York and across the country. The NDEA is a comprehensive plan that will establish a minimum price for fluid milk and will create a market-based safety net for dairy farmers during times of low milk prices.

"Agriculture is our state's number one industry," Reynolds said, who introduced the legislation during Dairy Month, which is celebrated annually in June. "This plan will make certain that the bottom doesn't fall out of the dairy market, providing a much-needed measure of economic security to our local dairy farmers."

National and comprehensive in scope, the NDEA will establish Regional Dairy Marketing Areas (RDMA) in the Northeast, Southern, Midwest, Intermountain, and Pacific regions. In each of the five RDMAs, a Regional Dairy Board would be responsible for setting the minimum price for Class I (fluid) milk sold in that region, which farmers in the region would then approve. Should the Class I price fall below the established minimum price, each region would receive market-based differential payments from a newly established national fund based on a set formula. In the event that the fund was to have a shortfall, the Department of Agriculture could supplement the payments with federal dollars to ensure that dairy farmers would receive full payments.

The NDEA overcomes inter-regional objections to past, similar plans because it creates regional equity and does not require the sharing or pooling of payout money between the regions.

"This program, if enacted, would be entirely optional for the states," added Reynolds. "States can simply continue to participate in the MILC program if they do not wish to take part in the NDEA program."

States that do not wish to participate can continue participation in the current MILC program, which would be extended to 2012. The MILC program is currently set to expire at the end of September 2007. Individual farmers in states participating in the new NDEA program could opt to merely continue receiving payments under their current MILC contract rather than under the NDEA.

In 2006, New York was the nation's third largest dairy state, accounting for about 7 percent of the nation's milk cows producing more than 12 billion pounds of total milk production totaling $1.6 billion in receipts from milk marketing. Wyoming County leads the state in milk production. Two other New York members, Rep. John M. McHugh and Rep. Kirsten E. Gillibrand, also joined onto the legislation as original co-sponsors.

"We have a chance to do something meaningful and lasting by passing this legislation that will ensure the vitality of the dairy industry in New York and nationwide," Reynolds said. "I'm confident this program will strengthen our local dairies and provide an important support structure to ensure their future."

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