Date: 1981-03-26
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Chairman. let me say to the Members of the House that H.R. 1986 is a clean bill reported by the Committee on Agriculture of the House of Representatives. or. rather. it is a bill which has been made in order by the rule which we have just adopted. I would say to my colleagues that it is very simple legislation. All it does is this: It prevents an adjustment in dairy supports which would otherwise. under present law. become effective Mr. Chairman. that is the entirety of the legislation. The administration uses the figure of $147 million as a savings. if the bill becomes law. The CBO estimates savings at $160 million. I must be very fair and very frank with the Members and say that there was an amendment offered in the committee. a compromise amendment that would have saved something like $120 million to $127 million. Therefore. there was a spirit of compromise present. Mr. Chairman. allow me to present some background information and legislative history pertinent to this issue: The Agricultural Act of 1949 requires the support of milk prices at such level between 75 and 9 percent of parity as is necessary to assure an adequate supply to meet current needs. reflect changes in the cost of production. and assure a level of farm income adequate to maintain productive capacity and meet future needs. The act was amended in 1977 and 1979 by first. raising the minimum level of support to 80 percent of parity through September 30. 1981. and second. requiring midyear adjustments to reflect any change in the index of prices received by farmers. Interest. taxes. and wage ratesthe parity index. The act specifies that the support be provided through purchases of dairy products. The purpose of the milk price support program. as prescribed by the Agricultural Act of 1949. is to assure an adequate supply of pure and wholesome milk to meet current needs. reflect changes in the cost of production and assure a farm income level adequate to maintain productive capacity sufficient to meet anticipated future needs. For the past 3 years. the Agricultural Act of 1949 has required that the price of milk be supported between 80 and 90 percent of parity at the beginning of each milk marketing year. and that the level be adjusted semiannually on the basis of changes in the index of prices paid for farm Inputs. The administration informs us that this level of price support has given dairy farmers very strong incentives to produce an increasing volume of milk. and that as a result. production has increased rapidlymore rapidly than commercial use. USDA says that these surpluses have had to be purchased by the Government and are continuing to grow at a rapid rate. If H.R. 1986 is adopted. the dairy support price of $13.10 per hundred poundswhich was set last October 1will * be continued unchanged through next September 30. The Congressional Budget Office advises that enactment of H.R. 1986 will have an antiinflationary impact by eliminating a 90 cent per hundred weight increase in the support price for milk that would otherwise occur on April 1. 1981. and by saving Government costs of approximately $160 million in fiscal year 1981 and $86 million in fiscal year 1982. Circumstances have compelled the committee to report this particular bill which deals only with the temporary. shortterm issue of where to set dairy support prices for the 6 months from April 1. through September 30. 1981. without knowing what policies will be recommended by the administration to help maintain a stable and efficient dairy.industry for the 4 years beginning October 1. Some members of the dairy industry feel that this bill is unjust and undue or harsh treatment of their industry. There are others who. for various reasons. are willing to go along with it with the promise from usand I hope that the Members concurthat we will come right back and address the question of alongterm dairy program in the 1981 omnibus farm bill which will be considered by our committee in the near future. I might also say that one might ask. "Well. what is this Democratic chairman doing managing a House bill and speaking for legislation which has been recommended by a Republican administration?" I would say to my dear colleagues that this is not a partisan issue. and I think that I am fulfilling the responsibility of a committee chairman in bringing to the floor legislation upon which the committee has exercised its will. That is what we bring to the Members here today. Also. I might say that the democratic leadership of the Housethe Speaker and the majority leaderhave impressed upon me. as the committee chairman of their party. the fact that we must be responsible and that we must be cooperative to the extent possible with the mandate of the people and the recommendations of the Reagan administration. On some administration recommendations we will agree. on others we might disagree. But always. we will act as responsibly as we are acting today. letting the committees work their will. and allowing the House to have the legislation before it to exercise its will. I would hope that the American people and the dairy industry. includfrig some who will be hurt drastically by this legislation. know that some of us who might have disagreed with the full textof this legislation are. nevertheless. cooperating to arrange action on the bill. Personally. under my responsibility as chairman of the committee. I am bringing this legislation to the floor so that the House can exercise its will in as responsible a manner as it can and in a spirit of cooperation with what we believe to be the will of the people and the Reagan administrations recommendation. Mr. Chairman. I again say that we may not agree in some areas. we might not agree on the priorities. and we may disagree in the future. But. we must act responsibly. It is always our wish to let the committee exercise its will and let the House exercise its will. That is why we bring this legislation to the Members today.