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The Washington Times | November 29, 2001 | By Audrey Hudson; THE WASHINGTON TIMES

Senate Democrats are trying to expand Sen. James M. Jeffords' pet dairy program into a nationwide subsidy but are meeting resistance within their ranks and from the Republican leadership.

Mr. Jeffords, Vermont independent, abandoned the Republican Party and threw Senate control to Democrats earlier this year after the White House signaled that the Northeast Dairy Compact would not be renewed.

Democrats are offering another program as a compromise that would fix the price that dairy processors nationwide must pay farmers for raw milk, but the measure's Senate author, fellow Vermonter Patrick J. Leahy, acknowledges its endorsement will be an uphill battle.

The measure, expected to cost the federal government $300 million per year in compensatory payments to dairy processors, is meant to appeal specifically to longtime dairy-compact critics, Sens. Herb Kohl and Russell D. Feingold, both Wisconsin Democrats. However, neither senator from the nation's leading dairy state has endorsed the compromise.

"I'm certainly not prepared at this point to say yes or no, but I have an open mind," Mr. Kohl said.

Mr. Kohl said he was concerned that having a set nationwide price for raw milk could eliminate market forces and competition, and could hurt farmers and consumers.

"We still have the real market place," Mr. Kohl said. "Historically in this country, we have never had any commodity or any product ever that just set an arbitrary price, so we'll have to figure out how it will really work because it is something new."

Republicans and Democrats also are concerned that Mr. Leahy will pull his amendment for a nationwide subsidy at the last minute and replace it with the expired dairy compact.

"If that happens, the farm bill is dead," said Sen. Larry E. Craig, chairman of the Republican Policy Committee.

"I think we have the votes to stop that now and we will work very hard to make that happen if that's what they want to do," Mr. Craig said.

Mr. Craig and fellow Idaho Republican Michael D. Crapo will attempt to strip the national measure from the farm bill when it comes up for debate today, a move endorsed by Senate Minority Leader Trent Lott, Mississippi Republican.

"The language they have in there is even worse than the Northeast Dairy Compact. It's hard to believe, but it is really terrible," Mr. Lott said.

Mr. Feingold said he supports a national dairy program, but is concerned that this key element may be removed when both houses meet to hammer out the final details in conference committee.

"I'm not ready to commit," Mr. Feingold said.

Mr. Leahy yesterday refused to answer questions from reporters about the dairy compromise, but in a statement last week said key opposition would come from processors, who would pay more for milk.

"Processors have spent millions trying to kill our regional compact, and they're digging even deeper into their pockets to kill this national plan," Mr. Leahy said.

Under the Leahy proposal, consumers would pay 10 percent, or 26 cents more, per gallon of milk, according to the Food and Agricultural Policy Research Institute.

That amounts to a $1.8 billion milk tax on consumers, said Kathleen Nelson, director of legislative affairs for International Dairy Foods Association.

"At a time when poor people are being squeezed now more than ever as we head into this recession and folks are losing jobs, it is not the time for Congress to impose a milk tax on American families," Miss Nelson said.

Congress authorized the Northeast Dairy Compact in 1996, giving six New England states the authority to create a regional dairy agreement. It allows an interstate commission to set minimum prices paid by dairy processors to dairy farmers at a level above the federal minimum.

****BOX

PENDING IN CONGRESS

Status of key legislation:

AIRLINE SECURITY

President Bush has signed into law aviation-security legislation that makes the country's 28,000 passenger and baggage screeners federalized union workers within a year, requires criminal-background checks on some 750,000 airport employees, requires airports to screen all checked baggage and mandates creation of a Transportation Department agency to oversee all transportation-security matters.

APPROPRIATIONS

Congress has passed and sent to Mr. Bush for his signature five of the 13 annual spending bills needed to keep the government running.

Status: Congressional and White House negotiators have agreed to a framework for the remaining bills. They could be rolled into a comprehensive measure to accelerate the process.

DEFENSE

Annual reauthorization bill

Status: The measure, which includes a supplemental $18 billion request by Mr. Bush, has been passed by the House and Senate but faces a difficult conference over a base-closing provision.

ECONOMIC STIMULUS

Senators are debating several plans after killing a $69 billion Democratic bill that the White House says devotes too much to new spending. Democrats favor a plan that would emphasize spending on items such as extending unemployment benefits and federal health-insurance policies over the tax cuts favored by Republicans.

Status: The House has passed a Republican-backed $100 billion stimulus package made up mainly of tax cuts. Mr. Bush wants the legislation before lawmakers head home for Christmas.

TERRORISM

Mr. Bush has signed into law an anti-terrorism bill. The new law increases the authority of law enforcement to wiretap suspected terrorists, share intelligence information about them, track their Internet activities and crack down on their money laundering.

TRADE

The president is seeking "fast-track" procedures through 2005 requiring Congress to vote without amendment on trade deals negotiated by the administration. Congress could only approve or reject the entire package within three months after the deal is submitted by the president.

Status: The House will vote on the trade promotion authority legislation Dec. 6.

Sources: U.S. Congress, Congressional Quarterly, Associated PressThe Washington Times: