Carney Seeks To Lower Costs Of Production For Local Dairy Farmers

Press Release

Congressman Chris Carney is an original co-sponsor of a bill introduced this week that would eliminate all hauling costs for milk producers in efforts to protect dairy farmers from paying unfair fees to milk processors. The legislation was introduced by Congressman Michael Arcuri (D-NY) and Congressman Chris Lee (R-NY) to offer immediate relief to family dairy farmers that have suffered tremendous losses over the past year due to low milk prices.

"I am committed to doing everything I can to assist our dairy farmers, who have been hard hit by a combination of factors outside of their control," said Congressman Chris Carney. "This legislation will help dairy farmers keep down costs by eliminating burdensome hauling fees, stop fees and fuel surcharges. It is a crucial step toward ensuring that our local dairy farmers can recoup their costs of production and stay on the farm. Our family farms are the economic engines of our small towns and rural communities and this legislation will help reduce some of the high production costs that prohibit their profitability."

Said Congressman Arcuri: "Helping dairy farmers get the assistance they need is critical for the economic success of the dairy industry as a whole. This legislation will cut costs for dairy farmers and move towards a short-term recovery in the dairy industry, as well as a longer-term solution to help producers save money from production costs. I am committed to doing as much as possible for our dairy farmers, and I will continue to work with them across the country in order to solve this crisis."

Currently, dairy producers must pay processors for any transportation-related costs incurred after a milk producer's raw milk leaves the farm operation and is transported to a milk plant, receiving station, or transfer station. This legislation would eliminate the burden of hauling fees, stop fees, fuel surcharges, and other related fees for farmers. This bill also clarifies that ownership of milk is transferred from the milk producer to the processor when it leaves the milk producer's facility. Producers have traditionally argued that they lose ownership over their milk once it is co-mingled with other product in the milk truck.

Congressman Carney is a member of the Congressional Dairy Farmers Caucus and supported a House measure earlier this year to secure $350 million in assistance for the dairy industry, legislation that was signed into law by the president on October 21, 2009.

The $350 million included in the Fiscal Year 2010 Agriculture Appropriations bill has $290 million in direct support to dairy farmers and $60 million would be used to purchase cheese and other dairy products for food banks and nutrition programs, spurring prices for raw dairy products by drawing down supply on the market.

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