COMPETITION: Sen. Leahy, D-Vt., recently took funds from organization he has harshly criticized
Watertown Daily Times
By Marc Heller, Washingonton Correspondent
WASHINGTON – When Dairy Farmers of America, the nation’s largest marketing cooperative for dairy farmers, was poised to gain 90 percent of the market in New England a few years ago, the loudest objections came from Sen. Patrick J. Leahy, D-Vt., who called the prospect “devastating.”
“Independent dairy farmers and other cooperatives could be cut out of the marketing system unless they give in to the will of the giant DFA conglomerate,” warned Mr. Leahy, top Democrat on the Senate Judiciary Committee, which handles antitrust matters.
Since then, DFA has expanded a little closer to home — taking the St. Albans Cooperative Creamery in Vermont on as a partner — and Mr. Leahy has a new relationship with the giant conglomerate: campaign cash. For the first time, Mr. Leahy accepted a campaign contribution last year from the political action committee for DFA. He took $2,000, according to filings at the Federal Election Commission.
Mr. Leahy’s contribution from DFA is just one drop in a growing sea of political money flowing from organizations connected to the dairy industry. In an election year that will decide the presidency and control of Congress, dairy groups are among those sending more money to lawmakers — and developing a sudden affinity for Democrats, who seem poised to expand their majority.
“They probably don’t agree with him on his concerns about consolidation, but there still is common ground,” said Mr. Leahy’s spokesman, David Carle, who noted agreement on issues such as milk subsidy payments to farmers and expanding milk advertising fees to imports.
Mr. Carle also cited the “strategic alliance” between DFA and St. Albans, a cooperative Mr. Leahy has long supported.
A spokesman for DFA did not return a call seeking comment about the cooperative’s political action committee, which is called the Dairy Education Political Action Committee, or DEPAC. It gave $187,500 to federal lawmakers this cycle through the end of December, of which 51 percent went to Democrats. In 2006, it gave $762,100 to candidates.
Mr. Leahy is not new to dairy-related campaign money; like many other lawmakers, he has been a regular recipient of contributions from organizations tied to dairy farmers and some of the companies that buy their milk. But DFA sticks out because of Mr. Leahy’s criticism of some of the cooperative’s moves in recent years.
The deal to give DFA 90 percent of the market, though a complex deal with H.P. Hood, Suiza Foods and National Dairy Holdings in 2002, was one of the biggest moves. But two years earlier, Dean Foods merged with Suiza Foods over Mr. Leahy’s objections to the Justice Department; each successive deal shrank competition and paved the way to DFA obtaining exclusive supply contracts with a greater share of the region’s dairy plants.
Mr. Leahy also cautioned about DFA’s affiliation with St. Albans in 2003.
“Vermont dairy farmers — and farmers everywhere — do better when there is more competition, not less, for their milk,” Mr. Leahy said at the time.
Dairy Farmers of America is the largest campaign contributor among dairy farmer groups. Its political action committee has contributed to dozens of lawmakers, including Rep. John M. McHugh, R-Pierrepont Manor.
But others participate in campaign giving as well. The National Milk Producers Federation’s PAC, representing co-ops, gave $36,000 to candidates for this cycle through December, of which nearly 70 percent went to Democrats; its contributions of $83,500 in the 2006 cycle went to Republicans by 65 percent to 35 percent.
The PAC for Agri-Mark Inc., a dairy cooperative based in Massachusetts but with affiliated farmers in Northern New York, has given $23,500 so far, including $500 to Mr. McHugh and $2,000 to Mr. Leahy.
The International Dairy Foods Association, representing food companies that buy farmers’ milk, gave $127,587 to candidates through its PAC for the cycle through December. The biggest recipients were Sens. Tom Harkin, D-Iowa., and Pat Roberts, R-Kan., at $11,999 each; and Rep. Collin C. Peterson, D-Minn., at $6,000.
Mr. Harkin is chairman of the Senate Agriculture Committee, and Mr. Peterson is chairman of the House Agriculture Committee.
