98th Congress, 1st Session Senate Document No. 98-14

VETO—SENATE JOINT RESOLUTION 149

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

RETURNING

WITHOUT MY APPROVAL SENATE JOINT RESOLUTION 149, TO

TEMPORARILY SUSPEND THE AUTHORITY OF THE SECRETARY

OF AGRICULTURE

August 23, 1983.—Ordered to be printed

U.S. GOVERNMENT PRINTING OFFICE

11-011 O WASHINGTON : 1983

52-004 0 — 84------ 1 (Pt. 2) BLR
To the Senate of the United States:

I am returning herewith without my approval S.J. Res. 149, “To 

temporarily suspend the authority of the Secretary of Agriculture, 

under the milk price support program, to impose a second 50 cents per 

hundredweight deduction from the proceeds of sale of all milk 

marketed commercially in the United States.”

Current law allows the Secretary to deduct 50 cents per hundredweight from the proceeds of sale of all milk marketed, if the Commodity Credit Corporation (CCC) purchases of surplus milk are 

expected to exceed 5 billion pounds. This deduction program became 

effective April 16, 1983. Current law also authorizes the Secretary to 

deduct another 50 cents per hundredweight if CCC purchases of surplus milk are expected to exceed 7.5 billion pounds. Dairy farmers 

who reduce their milk production according to Department of Agriculture guidelines will be entitled to refunds of this second 50 cents.

This second deduction and the refund program are scheduled to go 

into effect on September 1 and are expected to produce net receipts by 

CCC of about $60 million during September. Even with both deductions in effect, the Department of Agriculture projects that CCC 

purchases of milk will still exceed 16 billion pounds for the current 

marketing year at a net cost to taxpayers of $2.4 billion.

I cannot support S.J. Res. 149, as it would reduce by $60 million 

the amount of funds available to be used to defray the cost of the 

milk price support program and would reduce the desired downward 

effect upon milk production. Without the added downward pressure 

of the second 50-cent deduction there will be less incentive to decrease 

milk production.

In addition, if I signed S.J. Res. 149, there would be even greater 

confusion on the part of milk producers. The first deduction has been 

the subject of extensive litigation. Since Secretary Block has announced that the second deduction and the refund program will begin 

on September 1, a delay of one month would only add to the confusion and make planning by producers even more difficult.

Implementation of the deduction has already been delayed considerably. As a result, the cost savings contemplated when this provision 

was enacted have not materialized, further worsening the Federal 

deficit.

The annual cost of the dairy price support program is now over $2 

billion and will continue to grow unless something is done. We cannot 

continue to absorb these enormous costs. The Administration’s position last year, which the Congress failed to accept, called for increased 

flexibility to set support levels that would facilitate a more favorable 

supply and demand balance and reduce Federal outlays. We remain 

committed to an economically sound dairy industry with adequate supplies of milk and dairy products for consumers, and we will continue 

to work with the Congress to achieve that end. However, until Congress can act on a mutually acceptable dairy program that accomU)
2

plishes the objectives stated above, we must continue to exercise without further delay what authority we have to deal with our dairy 

problem.

R onald Reagan.

The White H ouse, August 23,1983.

S.J.Res.149

Binety eiighth Congress of the "United S tates of America

Begun and held at the City of Washington on Monday, the third flay of January,

one thousand nine hundred and eighty-three

To temporarily suspend the authority of the Secretary of Agriculture, under the milk 

price support program, to impose a second 60 cents per hundredweight deduction 

from the proceeds of sale of all milk marketed commercially in the United States.

Resolved by the Senate and House o f Representatives o f the United

States of America in Congress assembled, That, prior to October 1, 

1983, the Secretary of Agriculture may not implement, under the 

provisions of section 201(dX3) of the Agricultural Act of 1949, a 

second deduction of 50 cents per hundredweight from the proceeds 

of sale of all milk marketed commercially by producers.

oftht fJntted-Statm and

President o f the Senate.

I certify that this Joint Resolution originated in the Senate.

AT THE FIR ST SESSION

Joint 'Resolution

Secretary.

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