Ag, Rural Affairs Committee Sets Hearing
(Continued from Pago A 1)
undercut in competition by a flow
of milk from other states where
milk is produced at a lesser cost
Because of the originally
intended short lifespan of the
Compact, farm organizations and
legislators were reluctant until
recently to attempt to support join
ing in the Compact
Many had expressed that by the
time Compact-enabling legislation
could be authorized by the states,
and expansion granted by the U.S.
Congress, if ever, there would be
little time remaining for producers
to enjoy any price benefits.
The Compact is tied to a termi
nation date of Oct 1,1999, having
been extended from the original
teimination date of April f, 1999.
New York's Legislature and
governor recently approved legis
lation enabling it to join the
Compact
New York’s action fulfilled a
necessary precursor for Pennsyl
vania to consider similar action.
The New Jersey Legislature had
previously approved such enabling
legislation, when it appeared that
New York and Pennsylvania
would not because of the time
restraints.
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Pennsylvania has its own inter
nal dairy pricing structure to pro
tect and ensure the instate produc
tion, processing and sale of Class I
drinking milk.
The Compact also deals with
Class I milk, though the Compact
is a multi-state agreement author
ized under federal law.
Compact legislation was intro
duced in the Pennsylvania Legisla
ture during the previous Legisla
tive session, but was not acted
upon by the time session ended last
fall. When a state Legislative ses
sion ends, all proposed legislation
not signed into law is voided.
Enrliw this year, in the current
session of the state Legislature,
stale Sen. Roger Madigan re
introduced proposed legislation
that would enable Pennsylvania to
join, should the national Congress
approve expansion of the Compact
to the adjoining states.
More recently, state Rep. Sand
ra Major (R-Sullivan, Susquehan
na and Wyoming counties) has
introduced a similar legislative
proposal in the state House of
Representatives.
Another piece of proposed
legislation was introduced into the
House by Rep. Thomas Scrimcnti.
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While United States senators,
such as Pennsylvania’s Sen. Rick
Saptfinnw, have repeatedly stated
that any proposal to expand the
Compact would be denied. Sen.
Arlen Specter of Philadelphia this
week announced that he would
work to support its expansion and
reauthorization.
The Compact is governed by an
internal commission. Late last
year, because of abuses and the
possibility of mote, the governing
body of the Compact changed
some of the Compact rules to tight
en restrictions on some of the milk
bring shipped into the Compact
region.
Producers in upstate New York
and some producers in northeast
ern Pennsylvania have been bene-
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fitting from shipping milk into the
Compact area.
Milk production in the New
England states has also increased,
officials reported last year,
although no authority directly
blamed the impact of the Compact
for increasing daily production
there.
The formation of the Compact
was an anomaly, and thus
controversial.
It went against the general thrust
of the U.S. Congress in its effort to
reform the way the nation supports
agriculture. The thrust of the U.S.
Congress and state legislatures in
recent years has been to create tot
ally free markets where values of
commodities are based upon supp
ly and demand.
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Eliminating government control
over price-setting has been
pursued not only because it has
been an obstacle in global trade
negotiations, but because price
support and price-setting programs
can artificially stimulate produc
tion of uneeded commodities.
In the dairy industry, dairy far
mers produce and deliver the pro
duct first, and are given a price
later.
It has been demonstrated
repeatedly in the dairy industry
and among the various commodi
ties influenced by independent
producers that, when the commod
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fitable levels, production has
(Turn to Page A 42)
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