LEGISLATIVE RESOLUTION requesting the United States Department of Agri-
culture to provide redress for price reporting errors in milk prices

WHEREAS, The State of New York values dairy producers and is recognized
for its high quality dairy products; and
WHEREAS, New York dairy producers take pride in supplying healthy,
fresh milk and other wholesome dairy products to the citizens of the
region; and
WHEREAS, Dairy is a prominent component to the agriculture industry in
New York, supporting the critical mass upon which nearly all other agri-
culture enterprises in the State are dependent; and
WHEREAS, The income from milk is a very important and integral part of
New York's economy and well-being; and
WHEREAS, It has come to the attention of the New York State legisla-
tors 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
formula 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 York'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, Regular mandatory audits should be implemented; without such
regular audits, as the USDA was instructed by Congress to conduct,
incorrect reporting of powder prices shall continue; and
WHEREAS, The Northeast States Association for Agricultural Stewardship
(NSAAS) of which New York is a member, and which organizations represent
state agricultural and rural policy leaders in the northeast, agreed at
its last annual meeting to draft a resolution urging the United States
Department of Agriculture (USDA) to address said underpayment to north-
east producers as a result of price reporting errors; and
WHEREAS, Even though New York legislators understand 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 York's producers lost
income, and this error has created a significant hardship to and
compounded New York producers' ability to meet their obligations includ-
ing rising feed, fuel, and fertilizer bills this spring; and
WHEREAS, The USDA has the authority under section 32 of the Agricul-
ture 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, That this Legislative Body pause in its deliberations to
request the United States Department of Agriculture to provide redress
for price reporting errors in milk prices; and be it further
RESOLVED, That in order to make redress, the USDA provide back-pay-
ments together with interest as early as possible to New York dairy
producers who were financially hurt by USDA errors in nonfat dry milk
price reports; and be it further
RESOLVED, 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 be it further
RESOLVED, That there be mandatory daily and weekly reporting of all
dairy commodity transactions, including prices and quantities by
location and product characteristics; and be it further

RESOLVED, That copies of this Resolution, suitably engrossed, be tran-
smitted to each member of the New York Congressional delegation, the
Secretary of the United States Department of Agriculture, and the
Commissioner of the New York Department of Agriculture and Markets.