94th Congress, 2d S e s s i o n ......................................Senate Document No. 94-154

VETOING S.J. RES 121, PROVIDING FOR MILK 

PRICE SUPPORT ADJUSTMENTS

THE PRESIDENT OF THE UNITED STATES

RETURNING

WITHOUT MY APPROVAL, S.J. RES 121, A JOINT RESOLUTION “TO PROVIDE FOR QUARTERLY ADJUSTMENTS IN

THE SUPPORT PRICE FOR MILK, AND FOR OTHER

PURPOSES”

VETO MESSAGE

FROM

January 30, 1976—Received

F ebruary 2, 1976.—Read and ordered to lie printed

U.S. GOVERNMENT PRINTING OFFICE

57-011 WASHINGTON : 1976
J anuary 30, 1976.

Received from the White House a sealed envelope said to contain 

S.J. Res. 121, Joint Resolution to provide for quarterly adjustments 

in the support price for milk, and for other purposes, and a veto message thereon.

D arrell S t Claire,

For the Secretary of the Senate.

Time received—8 :25 p.m.

To the Senate of the United States:

I am withholding my approval from S.J. Res. 121, which would increase the Federal support price for milk and require mandatory quarterly adjustments, for the following reasons:

1. It would saddle taxpayers with additional spending at a time 

when we are trying to cut the cost of government and curb 

inflation.

2. It would stimulate excessive production of milk, discourage 

consumption, force the Federal government to increase purchases 

of dairy products under the milk support program and build up 

huge and costly surpluses.

3. It would result in unnecessarily high consumer prices.

Under this bill, government outlays would be increased by $530 million, including $180 million during the 1976-77 marketing year and 

$350 million during the subsequent 1977-78 marketing year. In addition, consumers would be required to pay an estimated $1.38 billion 

more at retail for dairy products over the next two years.

If S.J. Res. 121 became law, the support level for milk would be set 

at 85 percent of parity, with adjustments at the beginning of each 

quarter, through March 31, 1978. This would result in substantial increases in the support level over the next two marketing years without 

taking into account either changing economic conditions or agricultural policies.

In disapproving similar legislation last January, I said: “To further reduce the demand for milk and dairy products by the increased 

prices provided in this legislation would be detrimental to the dairy 

industry. A dairy farmer cannot be well served by Government action 

that prices his product out of the market.” This is still the case.

As far as this Administration is concerned, future changes in the 

price support level will be based, as in the past, on a thorough review 

of the entire dairy situation. Major economic factors, including the 

level of milk production, recent and expected farm prices for milk, the 

farm cost of producing milk, consumer prices and government price 

support purchases and midget outlays, wflll be considered. Elimination 

of this thorough review by mandating an inflexible support price 

would be inadvisable.

(l)

S.D. 154
9

As you know, present legislation provides the Secretary of Agriculture with sufficient flexibility to increase the level of milk price supports between 75 and 90 percent of parity whenever the conditions indicate that an increase is necessary and advisable. The two increases 

announced by the Secretary of Agriculture last year-—one in January 

and another in October—should make it clear that this Administration 

intends to provide the price assurance dairy fanners need.

In this regard, to ensure adequate milk price support levels, I have 

directed the Secretary of Agriculture to review support prices quarterly, starting April 1. If it appears necessary and advisable to make 

price support adjustments to ensure the supply of milk, the Secretary 

of Agriculture will do so.

In vetoing S.J. Res. 121,1 urge the Congress to join me in this effort 

to hold down Federal spending, milk surpluses and consumer prices.

Gerald R. F ord.

T h e W hite H ouse, January SO, 1976.

S.D. 154