Earlier this year when President Bush signed the Milk Regulatory Equity Act of 2005 into law supporters said it would level the playing field and stop large producer-handlers from paying less than federally-mandated minimums for milk.

However, an article in the Chicago Tribune reveals a loophole in the new law. That loophole, excludes the state of Nevada from federal milk regulations. So now Nevada processors do not have to pay federally-regulated prices for milk. That gives bottlers in the state an advantage over competitors. The same thing the Milk Regulatory Equity Act was supposed to prevent.

The Nevada State Dairy Commission now sets the minimum price that processors can pay dairy farmers for milk produced in the state. Supporters say setting price at the state level allows regulators to react to changing market conditions quickly.

To read the full article, go to: http://www.chicagotribune.com/news/nationworld/chi-0607040210jul04,1,5591205.story?page=1&coll=chi-newsnationworld-hed

Chicago Tribune