WASHINGTON (January 27, 2006) - On behalf of the National Family Farm Coalition, dairy farmers John Bunting, Paul Rozwadowski, and Bryan Wolfe traveled to Washington, DC on January 19 from New York, Wisconsin, and Ohio, respectively, to bring access to rural credit and an investigation of the Chicago Mercantile Exchange (CME) onto the radar screen of Congressional leaders.

"Access to credit is critically important. Lending institutions have abandoned most U.S. dairy farmers," Bunting said. "A new pricing system that includes cost plus profit, a basic market concept, is needed. However, at the same time, farm financing needs to be brought closer to real needs." Wolfe added, "With limited credit and nonadjustable terms to conditions such as the market and weather, this has accelerated the exit of many farmers. Changes need to be made now before there aren't any farmers left."

The Senate meeting in the morning included staffers for Clinton (NY), Feingold (WI), Specter (PA), Schumer (NY), and Kohl (WI) as well as from the National Farmers Union. The House meeting, hosted by the office of Rep. LaTourette (OH), in the afternoon included staffers for Representatives LaTourette (OH), Sweeney (NY), Boehlert (NY), Obey (WI), Senator Voinovich (OH), and the House Agriculture Committee as well as from the Northeast-Midwest Institute.

"I've known Bryan Wolfe for years, and I've witnessed the challenges he faces trying to sustain his farm," said Rep. LaTourette. "As pressures mount for farmers to be more efficient and innovative in the way they bring their crops to market, it intensifies the need for these folks to have an open and accommodating door at their local bank. It's a real problem when that pool of funds dries up and strands America's family farmers without the resources necessary to continue. I'm glad we had the opportunity to bring so many knowledgeable people together to shed some light on this problem."

The discussion also shed light upon the CME's affect on farmers' prices. Even though only half of one percent of cheese is traded at the CME, this complex system determines the dairy farmers' paycheck and the price of milk in grocery stores across the U.S. Cheese, butter, and nonfat dry milk are traded at the CME on the cash market and it is not under any federal regulation such as the Commodity Futures Trading Commission, which leaves it vulnerable to manipulation by traders of cheese.

"We ask for a mechanism of oversight of the CME so that there is legal accountability to safeguard a fair pricing system for farmers, producers and consumers," said Paul Rozwadowski, Chairman of the Dairy Subcommittee and a WI dairy farmer.

The Dairy Subcommittee of NFFC will continue to work for a fair farmgate milk price that includes a regional cost of production, a transparent pricing system, and the consumer price index. For further information, please call (202) 543-5675 or visit www.nffc.net.