Aubertine bill would cut farm fees

State Sen. Darrel J. Aubertine has introduced a bill that would eliminate stop fees, hauling fees and fuel surcharges for dairy farmers and define ownership of milk as beginning once it has been taken from the farm.

"Milk prices already fail to cover the cost of production for our dairy farmers, and these stop and haul charges just put our farmers deeper in the hole," Mr. Aubertine said in a press release Tuesday. "This industry is struggling and New York cannot afford to lose another industry."

The legislation, bill number S.6158A, would require processing plants to pay for milk transportation costs rather than passing those costs to the farmers. Farmers would be able to keep $1 to $2 extra per hundredweight in their milk checks. Processors have charged an estimated average of $1.55 per hundredweight for October, and, with milk prices around $11 per hundredweight, these stop and haul fees can amount to a 13 to 17 percent charge.

"We work for dairy farmers, and anything that would result in improved net incomes on the farm is something that we support," said Karen Cartier, director of communications for Dairylea Cooperative Inc. However, "when making significant changes to something like this that has been in place for a very long time, there is the potential for unintended consequences."

Some dairy farmers are concerned that one unintended consequence would be processors finding a way to shift their higher transportation costs caused by the legislation back to them.

"They've got to pay for it one way or another," said Michael B. Kiechle, owner of the Garden of Eden Stock Farm, Philadelphia.

If processors do not raise prices for the consumer, said Charles L. Eastman, partner in Eastman Farms LLC, Ellisburg, then dairy farmers might still have to pick up some of the transportation costs — even if not through explicit fees.

"It's nice in theory, but just because it's not said on my milk check doesn't mean I'm not paying for it," Mr. Eastman said.

Neighboring states, including Vermont and New Hampshire, have passed or are considering similar legislation. However, both states are reluctant to enact policies that could impair local dairy farmers' ability to market their products out of state.

"Everyone has to realize that I'm competing with California as well as Wisconsin, and you can't do something here that's going to give them a competitive edge," Mr. Kiechle said.

According to a study conducted in April 2008 by the state Department of Agriculture and Markets Division of Milk Control and Dairy Services, 30 percent of New York-produced milk was shipped to neighboring states in 2006.

The same study states, "this flow of milk across N.Y. state borders raises issues on how to effectively enforce state regulations regarding the payment of milk hauling charges without infringing upon the interstate commerce clause."

Mr. Aubertine's bill and pending legislation in New Hampshire makes implementation of hauling fee bans contingent on similar legislation being passed in New York, Vermont and New Hampshire. The theory is that implementing the bans in all three states will reduce any negative effects the bans could have on interstate trade.

According to his statement, Mr. Aubertine has been working with legislators throughout the Northeast states, including New Hampshire and Vermont, to promote passing uniform legislation that would protect farmers against processors potentially unwilling to cover haul-and-stop costs that no longer could be charged to farmers.

"We need to protect our farms to protect our food, its quality and our health," Mr. Aubertine said.

The senator also is holding issues roundtables throughout the state to hear what farmers think about the bill, as well as farm labor and the dairy crisis. Forums are planned for Nov. 10 in St. Lawrence County, Nov. 12 in Oswego County and Nov. 19 at an agriculture public hearing at Jefferson Community College. Exact times and locations for some of the forums have yet to be determined.

For more information, call Mr. Aubertine's office at 782-3418.