The chairman of the U.S. Housesubcommittee on dairy, livestock and poultry issues, Rep.
Charles Stenholm (D-Tex.), said it is likely the U.S. dairy
support price will be cut next year.
    "It looks like the price cut may take place," Stenholm said
at a hearing today on dairy issues.
    Under the 1985 farm bill, the Agriculture Secretary can
lower the U.S. milk price support to 10.60 dlrs per cwt from
the current 11.35 dlrs if government purchases of dairy
products are forecast to exceed five billion lbs in 1988.
    The U.S. Agriculture Department forecasts government
purchases of dairy products will total six to seven billion lbs
in fiscal 1987, but says the level of purchases beyond 1987
will depend on the production decisions of dairy farmers.
 Reuter
