A34-Lancaster Farming, Saturday, December 21, 1991
Ag Secretary Wants You
WASHINGTON.
D.C. Secretary of Agriculture
Edward Madigan is inviting com
ments from the dairy industry and
the general public regarding the
future of the U.S. Department of
Agriculture's milk marketing
orders, according to Acting Secret
ary Roland Vautour.
The comment period will run
until March 2,1992, Vautour said.
Federal milk marketing orders
regulate the minimum prices paid
dairy farmers by handlers of Grade
"A" milk in specified geographical
areas.
Since they were established
under the Agricultural Marketing
Agreement Act of 1937, milk
marketing orders have been modi
fied periodically to keep pace with
changes in the structure of the
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dairy industry.
"Recently, concerns have
increased about the cost, efficien
cy and rationale of milk, marketing
orders,- Madigan said. "Are there
more efficient, more competitive
ways to give consumers a depend
able supply of milk and, at the
same time, give dairy farmers a
fair return for their product?-
In a separate but related action,
USDA's Agricultural Marketing
Service announced the preliminary
findings of its 43 days of hearings
held last year on milk marketing
orders. "I am not satisfied that
all of the issues were thoroughly
aired during the AMS hearings, so
I am posing a number of questions
to the dairy industry and the gener
al public which are aimed at a more
fundamental assessment of milk
Earning Our Way On More Of Your Acres.
To Respond
marketing orders,-* Madigan said.
The questions are:
Would producers, proces
sors and consumers be better
served with less regulation or
strengthened regulation under fed
eral milk orders? What would be
the impact of less regulation,
stronger regulation or no regula
tion on producers, processors and
consumers?
What institutions have other
countries used in milk marketing
that shed light on our own system?
Are there particular aspects of milk
marketing that are carried out more
equitably or efficiently in other
countries than in the United
States?
Could contractual arrange-
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ments between cooperatives and
handlers replace some of the func
tions now performed by the federal
order system? If so. which
functions?
If federal orders are changed
to impose less regulation, what
types of changes should be made?
For example, should the following
changes be implemented:
(1) Lowering of minimum Class
I differentials.
(2) Removal of pricing regula
tions that cause purchasers to pay
more under the order fa- milk
brought into a market than would
otherwise be necessary to attract
the milk to that market.
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(3) Establishing the lowest class
price under federal orders (usually
Class III) equal to the federal sup
port price for milk (instead of the
Minnesota-Wisconsin price)?
—lf the orders should be
strengthened, what specific addi
tional rules are warranted?
Should the orders be termi
nated? If so, should this be done
immediately or should the orders
be phased out over a period of
time; and, if so, how much time?
Responses should be sent by
March 2,1992, to the Secretary of
Agriculture, Milk Marketing
Orders. USDA, Washington, D.C
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