GLICKMAN PROPOSAL WILL STREAMLINE DAIRY PROGRAM AND STABILIZE PRICE
                                            Release No. 0031.98
                                                               
                                 Tom Amontree    (202) 720-4623
                                             tamontree@usda.gov
                                 Becky Unkenholz (202) 720-8998
                                        runkenholz@ams.usda.gov

GLICKMAN PROPOSAL WILL STREAMLINE DAIRY PROGRAM AND STABILIZE PRICE

     WASHINGTON, Jan. 23, 1998--Agriculture Secretary Dan Glickman today
announced proposed changes to the 60-year old Federal Milk Marketing Order
program that will streamline and introduce more market orientation into the
program.  Glickman also announced a national hearing will be held to
consider temporarily flooring the basic formula price for milk.

     "I was asked by Congress to simplify and consolidate the dairy
program, and I believe this proposal accomplishes that goal by sharply
reducing the number of milk marketing orders," said Glickman. "However this
is a big change and we can't expect farmers to make it overnight. That is
why we are proposing to phase in the changes over several years."

     The 1996 farm bill mandated that milk marketing orders be consolidated
by April 1999. 
The Administration's proposal will reduce the current 31 orders into 11. The
new regions would be Northeast, Appalachian, Florida, Southeast, Mideast,
Upper Midwest, Central, Southwest, Arizona-Las Vegas, Western and Pacific
Northwest.

     Other proposed changes include:  replacement of the basic formula
price (currently based in part on the Minnesota-Wisconsin price for grade B
milk), with a price that reflects the value of milk components such as
protein and butterfat in manufactured dairy products; two options for
replacing the way that minimum fluid milk prices are determined, including
one option that closely reflects the current program and a preferred
market-oriented option for fluid milk prices that could be accompanied by
transition assistance for dairy farmers; and other proposed suggestions for
streamlining language and provisions in the current order system.   

     "To address volatility in milk prices in the interim," Glickman said,
"we must also consider putting a temporary floor on the basic formula price
of milk to assist producers during this transition period."

     In addition, the Department will hold a national hearing beginning on
February 17, at USDA headquarters in Washington, D.C.  The hearing will
consider testimony about temporarily flooring the basic formula price for
purposes of calculating Class I (fluid) and Class II (soft dairy products)
milk prices until the reform process is completed and new orders are
implemented.

     "Anyone who has followed the dairy debate knows this is a highly
emotional issue with not a great deal of national consensus," said Glickman.
"I now urge the public to get involved and help us fix the program."  He
also emphasized that this is only the latest in a series of measures the
Administration has taken to respond to dairy industry concerns, including:
increasing dairy product exports throught the Dairy Export Incentive Program
and expanding the use of dairy products by nearly one-third in food and
nutrition assistance programs.

     The public will have until March 31 to provide comments to USDA on the
contents of the proposed rule, which  can be accessed on the Internet:
http://www.ams.usda.gov/dairy/reform;
when the proposed rule is published by the Federal Register on January 30,
copies may be purchased from the Government Printing Office by calling (202)
512-1800.

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