HJR11 (2008) Detail

Requesting the United States Department of Agriculture to provide redress for price reporting errors in milk prices.


CHAPTER 14

HJR 11 – FINAL VERSION

16Apr2008… 1208eba

2008 SESSION

08-2295

08/04

HOUSE JOINT RESOLUTION 11

A RESOLUTION requesting the United States Department of Agriculture to provide redress for price reporting errors in milk prices.

SPONSORS: Rep. Phinizy, Sull 5; Rep. Essex, Hills 1; Rep. O'Connell, Hills 6; Rep. Sad, Ches 2; Rep. Haefner, Hills 27; Sen. Cilley, Dist 6; Sen. Reynolds, Dist 2

COMMITTEE: Environment and Agriculture

ANALYSIS

This resolution requests the United States Department of Agriculture to provide redress for price reporting errors in milk prices.

16Apr2008… 1208eba

08-2295

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

A RESOLUTION requesting the United States Department of Agriculture to provide redress for price reporting errors in milk prices.

Be it Enacted by the Senate and House of Representatives in General Court convened:

Whereas, the state of New Hampshire values its dairy producers and is recognized for its high quality dairy products; and

Whereas, New Hampshire dairy producers take great pride in supplying healthy, fresh milk and other wholesome dairy products to the citizens of the region; and

Whereas, dairy is the “anchor tenant” of agriculture in New Hampshire, supporting the critical mass upon which nearly all other agricultural enterprises in the state are dependent; and

Whereas, the income from milk is a very important and integral part of New Hampshire’s economy and agricultural well being; and

Whereas, it has come to the attention of the New Hampshire general court that the federal government recently announced an error in the reporting of nonfat dry milk (“NFDM”) prices; and

Whereas, these reports, plus weekly price reports for cheese, butter, and dry whey, are used to develop the federal milk marketing order price formulae to determine minimum prices paid to producers and, accordingly, this error has resulted in U.S. dairy producers receiving significantly less dollars for their milk than what they should have been paid; and

Whereas, all dairy producers, including New Hampshire’s producers, and not the market, incurred this loss, estimated by the United States Senate at $6.4 million over a 2-month period; and

Whereas, the Northeast States Association for Agricultural Stewardship of which New Hampshire is a member, and which organization represents state agricultural and rural policy leaders in the northeast agreed at its last annual meeting to a resolution urging that the United States Department of Agriculture (USDA) address said underpayment to northeastern producers as a result of price reporting errors; and

Whereas, even though the New Hampshire general court understands that the USDA and the inspector general are conducting an investigation to determine the extent of the effects, reports suggest that this problem may have been present for 8 to 9 months which has cost New Hampshire’s dairy producers lost income, and this error has created a significant hardship to and compounded New Hampshire producers’ ability to meet their obligations including rising feed, fuel, and fertilizer bills this spring; and

Whereas, the USDA has the authority under section 32 of the Agricultural Adjustment Amendment Act of 1935, to provide funds for dairy producer indemnification, once the overall impact on dairy producer prices has been determined; now, therefore, be it

Resolved by the Senate and House of Representatives in General Court convened:

That in order to make redress, the USDA provide back-payments together with interest as early as possible to New Hampshire dairy producers who were financially hurt by USDA errors in nonfat dry milk price reports; and

That the USDA immediately implement mandatory auditing of product prices and inventories, as had been directed by Congress in 2000 and 2002, to avoid future errors in price reporting; and

That without such regular audits, as the USDA was instructed by Congress to conduct, incorrect reporting of powder prices shall continue; and

That there be mandatory daily and weekly reporting of all dairy commodity transactions, including prices and quantities by location and product characteristics; and

That a copy of this resolution be forwarded to all members of the New Hampshire congressional delegation; and

That a copy of this resolution be forwarded to the Secretary of the United States Department of Agriculture and the commissioner of the New Hampshire department of agriculture, markets, and food.

Approved: May 12, 2008