House Ag Committee
(Continued from Pago Al)
out of the House Ag Commits
and received first consideration by
the House and was tabled on
Monday.
It takes three considerations for
a bill to be approved by a legisla
tive body.
It is expected that, when the
House of Representatives returns
to session in June, leadership will
send the bill to Appropriations
Committee, before reviewing
again on second consideration.
While in the Appropriations
Committee, little action is
expected because the legislation
requites no state fiscal note. How
ever, committee leadership deter
mines how quickly the bill is
considered.
The House is then expected to
consider the legislation, before
sending it back to the Senate for
reconsideration, because of die
For more
and other Ag Loan Programs
Call 808 ZOOK at
Serving Farmers Since 1881
amendments.
Frequently what seems immi
nent in Harrisburg can be far diffe
rent from what eventually comes
to pass, but from comments made
by a number of people involved
with tire issue, it does seem likely
the legislation could well end up
being settled between the two legi
slative bodies and sent to Gov.
Tom Ridge for signing into law by
the end of June.
If not, the state Legislature
would have to wait until it returns
in September, after Labor Day, to
review the proposed law. It would
also have to have the legislation
signed into law fay Gov. Ridge
before the end of September, or
before the federal Legislature
decides to focus on the federal
authorizing law.
For those unfamiliar with tile
Northeast Interstate Dairy Com
pact, it is a six-state milk pricing
(mpS)
The ‘Ephmta National “Bank '
information on this
717-733-2911
Amends Dairy Compact Legislation
organization authorized by the and cheese) falls below the Com- cm tier counties with less dairy
U.S. Constitution and created in pact Commission-set level. production than the southern coun
the 1996 Farm Bill as a means to It creates a minimum milk price tics, and reportedly higher rates of
soften the transition for the dairy paid to farmers for their drinking farm failure due to marginal pro
industry in the New England states milk, providing a potential foi ducer prices, despite record high
from the scheduled elimination of ■ break-even to profitable cash-flow prices two out of the past three
federal support pricing for the protection. years.
dairy industry. hi Pennsylvania, Dairy Com- What the Compact means to the
Simply, the Compact pact legislation was proposed dur- dairy industry as a whole is uncer-
Commission consisting of up ing the previous Legislative ses- tain. It has varied so far, depending
to five delegates from each of the sion, but never made it for a vote upon the individual,
participating states, representing before session ended last fall. State Sens. Madigan and Slo
dairy producers, processors, and The current proposal is very cum have slated that the Dairy
consumers determines the similar to what had been proposed. Compact legislation represents a
minimum price farmers are to and has been one of the first issues form of farmland preservation for
receive for their milk, and a retail to be taken up by the current state their respective constituencies,
price of drinking milk that can pro- Legislature. which suffer from not being able to
vide the additional funds to pay The Senate version of Pennsyl- attract much, if any, farmland pre
farmers. _ vania’s Compact legislation was servation funds.
The minimum price to farmers
kicks in when drinking milk prices
(the Boston Class I, as set by the
federal government according to a
formula that considers market val
ues of milk products such as butter
Li.
Li.
Minimum Loan $200,000.
5 Year Rate Fix.
Ist Lien on Qualifying Farm
required.
Appraisal, Title Insurance,
Documentation and Closing Costs
to Borrower.
Li.
Li.
Li.
Maximum 75% Loan to Value.
Qualified Ag Purpose Only.
Offer Expires 6/30/99.
drafted by state Sen. Roger Madi
gan and is also supported by Sen.
William Slocum, majority chair
man of the Senate Agricultural and
Rural Affairs Committee.
Both senators represent north-
Member F.D.I.C
Lancaster Fanning, Saturday, May 15, 1999-A25
However, other state legislators
don’t necessarily share the view
that entering into the regional gov
ernmental pricing system of a
Compact to possibly stem the loss
of dairy farm land is justifiable.
According to Rep. Raymond
Bunt Jr., R-Montgomery County,
who is chairman of the House
Agriculture and Rural Affairs
Committee, many members of the
committee have concerns that, in
the long run, joining the Compact
may do more harm for small herd
dairy farms, and perhaps hasten
the industry's integration.
Rep. Bunt said that while the bill
was approved by the committee, it
was with much reservation.
Egolf s “no” vote reflected the
same concerns, he said, and he
expressed the sentiment that his
vote was not much different than
the others he said he is in
opposition to the Compact and in
support of the family farmers in his
district and the vote didn’t
reflect opinion toward the three
amendments.
“It’s a pretty involved and com
plicated pact they want to get
into,” Egolf said about the Com
pact and those who are promoting
it, “but basically I’m concerned
about the small dairy farmers. In
the short run (the Compact) will
help the small dairy farmers, but in
long run it will hurt them.
“The large farmers it will help,
but it will hurt the small farmers,”
he said, adding, “There ate lots of
aspects that I really question.
“It isn’t the right way to go, so I
felt I should vote that way,” Egolf
said.
Effectively, the three amend
ments were:
• To create a June 30, 2002,
sunset provision for the law (or
three years from the effective date
of the law), so that Pennsylvania's
eligibility in a Compact would end
then;
• To restore the Pennsylvania
delegation to the Compact Com
mission to the maximum five peo
ple allowed under Compact law.
As background, when S.B. 36S
was in the Senate Agriculture and
Rural Affairs Committee it was
amended from having five appoin
tees by the governor represent the
state on the Northeast Dairy Com
pact Commission to having the
three members of the Pa. Milk
Marketing Board (PMMB) repre
sent the state on the Commission.
The House amendment restores
the delegation to five members,
retaining one member of the
PMMB, its chairman, but adding
the majority and minority chair
people (or their designees) of the
Senate and House agriculture
committees.
• Add wording to emphasize
that Pennsylvania’s Compact dele
gation members will “take all rea
sonable steps necessary to minim
ize the economic and adminlstra-