The Vermont Congressional Delegation
Joint Statement on Expiration of the Northeast Dairy Compact

September 25, 2001

In recent weeks, it has become apparent that the Northeast Interstate Dairy Compact will expire on its current sunset date of September 30th, this Sunday. The powerful interests who oppose the Compact and their legislative allies have thwarted our efforts to include the Compact on an appropriate legislative vehicle. The developments of the last two weeks have further altered the legislative landscape as we work to meet the pressing needs of our nation.

We would like to assure Vermonters, however, that although the deadline may pass, we will not give up on this fight. We must now work harder than ever to resurrect the Compact B if at all possible, before the end of this legislative year, and if that is not possible, as soon after that as possible. Several key bills remaining on Congress's agenda may offer opportunities to extend the Northeast Compact, including the next Farm Bill, where the merits of dairy compacts can be fully debated.

In the short term, fluid milk prices in New England are strong and should remain well above the Compact over-order price for the foreseeable future. However, when milk prices begin to dip, farmers again will need the Compact pricing mechanism to provide stability for our dairy industry.

Since its inception in July of 1997, the Northeast Interstate Dairy Compact has done just what Vermonters had said it would do. It has become a model to other regions that now seek authority for compacts of their own. It has worked to meet the needs of the dairy industry in our region, setting a price level that is fair for producers, processors, retailers and consumers. By stabilizing pricing levels, the Compact has reduced the volatility in the marketplace and ensured our farmers a decent return for their labor. And, unlike so many of our country's agricultural programs, the benefits of the Dairy Compact are achieved with no cost to the federal government.

We appreciate and admire the patience and support that the dairy farmers of New England continue to show the nation as we continue to fight for the Compact. In the weeks ahead, we will be working tirelessly to resurrect the Compact, a program that has helped preserve an industry and a way of life for so many New Englanders.