>> THIS LAND IS OF MY FOREBEARERS WHO CONFORMED ITS WILDNESS TO THEIR OWN DESIGNS, WHO PLOWED MEASURED FURROWS ACROSS ITS RANDOM SWALES AND DESCRIBED ITS BOUNDARIES IN ROWS OF STONE, WHO BAPTIZED IT WITH THEIR SWEAT AND THEIR BLOOD AND JOINED IT WITH THEIR BONES.

>> THAT'S 3 OUT OF A 10.

4, 5 AND 5 IS 10.

THANK YOU VERY MUCH.

>> THANK YOU.

WHETHER IT'S APPLES, OR MILK OR ANY AGRICULTURAL PRODT, EVERY FARMER FACES A CHALLENGE OF BEI BOTH GROWER AND SELLER.

IN SPITE OF OUR SOCIETY'S SOMETIS ROMANTICOTIONS, FARMING IS MORE THAN JUST A LIFESTYLE, IT'S ALSO A BUSINESS, A BIG BUSINESS THAT CONVERTS THE FRUIT OF THE LAND INTO A HARVEST OF HARD DOLLARS AND CENTS.

>> CONVERSION IS THE BASIS OF VERMONT'S FARM ECONOMY.

FARMERS HARVEST RAW FOODS AND SELL THEM TO BE CONVERTED INTO MARKETABLE FOOD PRODUCTS.

SOUNDS SIMPLE UNTIL YOU REALIZE THAT PRODUCING, PROCESSING AND SELLING FARM-ORIGINATED FOODS INVOLVES MUCH MORE THAN JUST MONEY CHANGING HANDS.

VERMONT'S AGRICULTURAL BALANCE SHEET IS MORE PROBLEMATIC THAN IT'S EVER BEEN AND EVERYONE IN THE SYSTEM IS FEELING IT.

>> THESE DAYS IT COSTS ARNOLD TEBBETTS $1.16 TO MAKE A GALLON OF HIGH CREAM JERSEY MILK.

MOST OF HIS PRODUCTION COST GOES INTO FEEDING HIS 40 COWS, PAYING THE ELECTRIC BILL AND THE DEBT SERVICE ON FARM MACHINERY AND HIS VETERINARY AND GENETIC EXPENSES.

TEBBETTS KEEPS THINGS SIMPLE, MAKING DUE WITH AN OUTDATED BARN, WORKING ALONE OR WITH A SON AND GENERALLY CUTTING CORNERS ON EVERYTHING BUT THE QUALITY OF HIS PRODUCT.

FOR S EFFORTS HE'LL SEE A RETURN THIS WEEK OF $1.08 A GALLON, ALMOST 7% BELOW WHAT IT COST HIM TO PRODUCE HIS MILK.

A POOR FINANCIAL RETURN IS NOT ONE OF HANK BISSELL'S PROBLEMS.

MAINTAINING A MARKET IS.

THE BISSELLS SPEND NEARLY AS MUCH TIME AND EFFORT CULTIVATING THEIR CUSTOMER BASE AS THEY DO THEIR CABBAGES.

UNLIKE DAIRY FARMERS, VERMONT VEGETABLE FARMERS LACK AN EXISTING MARKETING INFRASTRUCTURE.

EY'RE ENTREPRENEURS WHOSE FINANCIAL SUESS OR FAILURE DEPENDS ENTIRELY ON SKILLS HAVING NOTHING TO DO WITH FARMING.

>> THE LAWS OF SUPPLY AND DEMAND CAN REEK HAVOC ON APPLE GROWERS.

A BUMPER CROP IN 1993 FLOODED THE MARKET DRIVING THE PRICE DOWN SHARPLY FOR VERMONT CS.

DESPITE THE HUGE INRNATIONAL DEND FOR VERMONT APPLES, SANDY WITHERELL HAS HAD TO WORRY MORE ABOUT GOOD HARVESTS THAN POOR ONES.

THE MORE APPLES HE PRODUCES, THE LIKELIER HE IS TO LOSE MONEY.

THIS DAIRY PROCESSING PLANT SYMBOLIZED ORDER AND FINANCIAL SECURITY TO THREE GENERATIONS OF VERMONT FARMERS.

IT PROVIDED THEM WITH A DEPENDABLE MARKETING OUTLET AS WELL AS A MEASURE OF PERSONAL IDENTITY, BOTH OF WHICH WERE NEARLY DESTROYED DURING A BITTER DEBATE, IRONICALLY OVER SAVING THE COMPANY.

CHANGING ECONOMIC TIMES HAVE SHAKEN VERMONT'S AGRICULTURAL INSTITUTIONS TO THE CORE, BUT THROUGH IT ALL THE INDUSTRY HAS MAINTAINED AN IMPORTANCE TO THE STATE THAT GOES BEYOND THE BOTTOM LINE.

THE CURRENT ESTIMATE OF VERMONT'S GROSS AGRICULTURAL PRODUCT IS $292 MILLION, UNDER 3% OF THE STATE TOTAL.

NOT A PARTICULARLY IMPRESSIVE FIGURE UNTIL YOU CONSIDER HOW INTERCONNECTED THE REST OF OUR ECONOMY IS TO FARMING.

>> THE BEST WAY TO VISUALIZE THE IMPACT OF A FARM AND AGRICULTURE IN A LOCAL ECONOMY IS THE IMAGE OF A ROCK BEING THROWN IN A MUD PUDDLE WHERE THERE IS A RIPPLE EFFECT CREATED WHERE THE ECONOMIC BENEFITS OF THE ACTIVITIES RIPPLE THROUGHOUT THE LOCAL ECONOMY.

>> DAIRY FARMING COMPRISES 85% OF VERMONT AGRICULTURE AND ITS RIPPLE EFFECT IS CONSIDERABLE.

BILL AND JENNY NELSON'S HOME ACRES IS A TYPICAL VERMONT FARM IN APPEARANCE AND THE EFFECT IT HAS ON BOTH THE LOCAL AND REGIONAL ECONOMY.

JUST ABOUT EVERY FARMING ACTIVITY INVOLVES MAJOR CASH OUTLAYS.

THE NELSON'S FEED BILL LAST YEAR TOTALED $98,000.

MORRISON CTOM FEEDS IN BARNET SOLD THE NELSONS $12,000 WORTH.

LES MORRIS'S TRUCKS GO THROUGH OVER 600 GALLONS OF DIESEL FUEL EVERY MONTH.

FUEL THAT'S PURCHASED FROM JOCK OIL IN WELLS RIVER.

WHEN CHUCK ENGLE DECIDED IT WAS TIME TO ADD A NEW FUEL TANKER TO HIS FLEET, HE FINANCED THE PURCHASE THROUGH THE WELLS RIVER SAVINGS BANK.

HIS LOAN OFFICER, HAZEN WILSON, JUST HAPPENS TO BE THE MAN WHO RECENTLY APPROVED BILL AND JENNY NELSON'S SHORT-TERM LOAN TO COVER THE $700 A MONTH LEASE ON THEIR NEW FEED WAGON FROM BLACKMOUNT EQUIPMENT IN NEARBY NORTH HAVERILL, NEW HAMPSHIRE.

AND SO IT GOES, FARM DOLR QUIETLY FILTERING THEIR WAY THROUGH THE ECONOMY.

>> EVERY DOLLAR SPENT IN A RURAL ECONOMY, IN FACT, HAS A 7-FOLD IMPACT ON THE SURROUNDING ECONOMY BECAUSE FARMERS, WHEN THEY EARN MONEY, DON'T KEEP IT UNDER THE MATTRESS, THEY GO OUT AND RESPEND IT, AND THOSE WHO EARN IT RESPEND IT AGAIN AND SO ON.

>> THIS IS THE LIST OF THE BUSINESSES WE DO BUSINESS WITH, AND IF YOU LOOK RE AT THE TOP, POIN GRAIN AND MORRISON CUSTOM FEEDS, THAT'S WHERE WE@BUY ALL OUR GRAIN FOR OUR COWS AND THAT AMOUNTS ABOUT $98,000 WORTH OF FM EXPENSES THAT WE HAVE IN A YEAR.

FARM CREDIT, WELLS RIVER SAVINGS BANK, FORDREDIT CORPORATION, JOHN DEERE COMPANY AND TELEMARK, INC., THOSE ARE ALL THE FINANCIAL INSTITUTIONS WHERE WE BORROW MONEY, PAY INTEREST AND PAY PRINCIPALS BACK.

>> IN A SINGLE YEAR OF FARMING ABOUT $350,000 PASSED THROUGH HOME ACRES .

THERE WEUBSTANTI RECEIPTS AND JUST AS SUBSTANTIAL EXPENSES.

IN THE END, THE NELSON FAMILY NETTED $24,000.

THEIR COMMUNITY GAINED $326,000.

>> D.C.

POTTER, HE'S THE FELLOW THAT REPAIRED OUR TRACTORS THIS SPRING, COST ABOUT $6,000.

>> AND IT GOES ON AND ON.

AGRICULTURE CONTRIBUTES TO THE EXISTENCE OF THOUSANDS OF JOBS, BOTH IN AND OUT OF FARMG.

E INDUSTRY RELIES ON A VAST INFRASTRUCTURE.

THE ARE RETAILERS TO PROVIDE EQUIPMENT, OLESALERS TO BUY PRODUCTS, EDUCATORS TO TEACH THE LATEST TECHNOLOGIES, BANKERS TO FIANCE IMPROVEMENTS, EVEN GOVERNMENT WORKERS TO KEEP TABS ON ALL OF IT.

AND IT DOESN END THERE.

TOURISM IS VERMONT'S SECOND LARGEST MONEYMAKER, AND TOURISTS WANT TO SEE FARMS.

>> HAVING FARMS ON HILLSIDES WITH COWS CHEWING THEIR CUD IS SOMETHING THAT TOURISTS AND TRAVELERS TO VERMONT HAVE GROWN TO EXPECT.

IT'S AN INTEGRAL PART OF THE TOURISM EXPERIENCE AND THE SIGHTSEEING EXPERIENCE.

>> YOU'RE BEAUTIFUL.

YOU'RE VERY PRETTY.

>> EVERY FALL BILL JENN NELSON OPEN THR FARM TO A BUS LD OF VISITORS IN SEARCH THE REAL VERMONT.

>> I'D LIKE TO WELCOME YOU HERE TO RMONT.

IT'S ALWAYS FUN TO THINK THAT I'M THE FIRST VERMOER THAT GETS TO SAY HI TO YOU, AND IT'S A REAL PLEASURE TO HAVE YOU HERE AT HOME ACRES FARM TODAY.

>> I THINK IT'S A WONDERFUL OPPORTUNITY FOR PEOPLE TO REALLY MEET THE FARMERS BEHIND THE BOTTLE OF MILK.

THEY HAVE A CHANCE TO GO AND SEE ME CALS, AND SOME OF THE BARN CATS AND SMELL THE FRESH AROMA, AND WE REALLY STSS THE FACT THAT WE TAKE PRIDE IN MAKING A GOOD PRODUCT.

>> THE PEOPLE THAT PRODUCE AGRICULTURAL PRODUCTS ARE INTENSELY PROUD OF THEIR OWN INDIVIDUAL EFFORTS TOWARDS PRODUCING QUALITY.

WE'VE HAD THISEPUTATION THAT GOES BACK TO THE EARLY DAYS OF OUR HISTORY.

IF WE JUST SEND AVERAGE PRODUCTS TO THE MARKET, THE CHANCES ARE THEY WOULD NOT HAVE GOTTEN A PREMIUM PRICE AND, IN TURN, WOULD NOT HAVE PAID FOR THAT VERY TENUOUS TRACT BETWEEN HERE AND BOSTON OR FROM HERE TO NEW YORK.

AS A CSEQUENCE, WE ALWAYS SEND O BEST PRODUCTS AND THAT REPUTATION HAS STAYED WITH US.

>> VERMONT FARMERS ARE DEVOTED TO THEIR PROFESSION.

THEY HAVE A NATIONWIDE REPUTATION FOR PRODUCING QUALITY AND IN THE PROCESS ENHANCING THE ENTIRE ECONOMY AROUND THEM.

THESE WOULD SEEM TO BE IMPRESSIVE INGREDIENTS FOR SUCCESS IN MOST BUSINESS SECTORS.

SO WHAT'S THE PROBLEM HERE?

SIMPLY STATED, MOST VERMONT FARMERS PRODUCE MILK AND MOST OF THAT MILK IS SOLD AT A PRICE THAT'S BELOW THEIR COST OF PRODUCTION.

ONLY 15% OF VERMONT MILK IS ACTUALLY CONSUMED IN STATE.

OF THE REST, HALF GOES INTO PRODUCTS SOLD NATIONWIDE AND THE OTHER HALF TRAVELS AS FLUID MILK TO THE SUPERMARKET SHELVES OF SOUTHERN NEW ENGLAND.

THE FARTHER A PRODUCT TRAVELS FROM ITS POINT ORIGIN AND THE MORE PEOPLE WHO HANDLE IT ON ITS WAY THROUGH THE MARKETPLACE, THE MORE CONFOUNDING ARE THE RULES THAT DETERMINE ITS PRICE.

NOWHERE IS VERMONT'S VULNERABILITY TO MARKET FORCES OUTSIDE OUR BORDERS MORE EVIDENT THAN IN THE WAY THE PRICE OF MILK IS SET.

>> THIS IS WHERE THE CURRENT WHOLESALE VALUE OF MOST BASIC FOODS IS ESTABLISHED.

HIGH POWERED COMMODITIES TRADING HERE AT THE CHICAGO MERCANTILE EXCNGE AFFECTS THE PRODUCER PRICE OF EVERYTHING FROM GRAIN TO PORK BELLIES.

HERE THE LF SUPPLY AND DEMAND TAKES THE FORM OF A WILD AUCTION KNOWN FOR THE SUDDEN ROLLERCOASTER PRICE SWINGS BY WHICH INVESTOR FORTUNES ARE MADE AND LOST.

BUT NOT ALL FOOD COMDITIES ARE TRADED AT THE MERC.

>> THIS IS THE ACTION AT THE NATIONAL CHEESE EXCHANGE.

IT'S HERE IN A 20X40 FOOT STOREFRONT IN GREEN BAY, WIONSIN, THAT ONE OF THE MOST UNIQUE PHENOMENA IN MARKET ECONOMICS IS PLAYED OUT EACH FRIDAY MORNING AT EXACTLY 10 A.M.

>> WHAT HAPPENS IN THE NEXT HALF HOUR WILL GREATLY INFLUENCE THE PRICE THAT AMERICA'S 171,000 DAIRY FARMS WILL GET FOR THEIR MILK BECAUSE THE COMMON DENOMINATOR FOR MILK PRICES THROUGHOUT THE NATION IS CHEESE.

ONE-THIRD OF THE MILK THAT AMERICA'S DAIRY FARMERS PRODUCE BECOMES CHEESE.

WHETHER IT BE MONTER JACK OR CHEDDAR, IT COMES OFF THE ASSEMBLY LINE LOOKING LIKE THIS, KNOWN IN THE INDUSTRY AS BLOCK OR BARREL CHEESE.

SINCE BIG PROCESSORS AREN'T COMPLETELY SURE HOW MUCH CHEESE THEY'LL SELL, THEY STORE THEIR SURPLUS IN COLD STORAGE WAREHOUSES LIKE THIS ONE UNTIL THE EXTRA CHEESE BECOMES A PROBLEM OR AN OPPORTUNITY.

>> THE MEMBERS CAN EITHER OFFER CHEESE IF THEY HAVE CHEESE FOR SALE OR THEY CAN BID FOR CHEESE IF THEY DESIRE TO BUY CHEESE.

>> PEOPLE COME HERE WHEN THEY HAVE AN EXCESS OF INVENTORY OR WHEN A PROCESSOR OR A COMPANY HA CONTRACTS TO SUPPLY A CUSTOMER AND THEY FIND THEMSELVES NEEDING A LITTLE MORE CHEESE THAN THEY HAVE ON HAND.

BASICALLY EVERY MAJOR CHEESE COMPANY IN THE UNITED STATES IS A MEMBER.

WE HAVE THE MAJOR CO-OPS, MID-AMERICA FARMS, A.M.P.I., LAND O'LAKES, AND THEN WE HAVE THE BIG CHEESE COMPANIES LIKE KRAFT, BORDEN, SCHREIBER.

>> ATTORY RICHARD GOULD PRESIDES OVER THE WEEKLY RIGHTS OF CHEESE TRADING AS HE HAS FOR OVER 30 YEARS.

IN FACT, EVERYTHING ABOUT THE EXCHANGE IS STEEPED IN TRADITION FROM THE PORTRAITS OF PAST CHEESE GIANTS TO THE ORIGINAL 1915 CHARTER THAT CREATED A PRIVATE SECTOR INSTITUTION THAT WOULD TIMATELY BECOME THE BAROMETER OF AN ENTIRE INDUSTRY.

>> OUR PRIMARY PURPOSE IS NOT TO SERVE AS A BENCHMARK FOR ESBLISHING THE PRIS OF CHEESE.

IT JUST TURNED OUT THAT WAY BECAUSE PEOPLE HAVE FOUND THAT THE TRANSACTIONS HERE ARE AN ACCURATE BAROMETER OF THE VALUE OF CHEESE.

>> THIS DAY HAS NOT BEEN A GOOD ONE.

>> FOUR BARRELS AT ONE THIRTY AND A HALF OFFERED BY KRAFT.

>> A SINGLE COMPUTER TRANSMISSION OF THE MORNING'S TRADING TO THE FEDERAL MILK MARKETING ADMINISTRATION WILL RESULT IN A 4% PRICE DROP NATIONALLY.

AMONG THE LOSERS WILL BE VERMONT FARMERS.

>> THEIR POLICY IS PRECISELY TO DRIVE PRICES WN FOR FARMERS.

IF THE PEOPLE WHO PURCHAD THE MILK AND DISTRIBUTE IT CAN PAY LOWER PRICES THEYAKE MORE MONEY, AND THAT'S WHAT THEY'VE BEEN DOING.

>> THERE'S A LOT OF MONEY BEING MADE OFF OF THE CHEAP MILK PRICES.

THE PROCESSORS WHO ARE BUYING THE CHEAP RAW PRODUCT HAVE AMPLE SUPPLY OF AS MUCH MILK AS THEY WANT, THEY CAN TURN IT INTO A VALUE ADDED PRODUCT, PUT IT ON THE MARKET AND MAKE A LOT OF MEY >> EVERY TIME THE MARKET GOES DOWN, THE NATIONAL CHEESE EXCHANGE GETS BLAMED, JUST AS THE MESSENGER GETS BLAMED WHEN HE BRINGS BAD NEWS.

I CAN'T ACCOUNT FOR THAT.

WE DEMONSTRATE A FREE-MARKET ECONOMY.

>> A FREE MAET THEORETICALLY REWAS ALL PARTICIPANTS, BUT IN THE CASE OF AMERICAN AGRICULTURE, ONE SET OF PLAYE SEEMS TO BE LOSING OUT.

WHILE AMERICANS ARE PAYING MORE FOR THEIR FOOD, FARMERS ARE MAKING LESS.

THE UNITED STATES DEPARTMENT OF AGRICULTURE FOUND THAT THE FARM VALUE FOR MILK, WHAT THE FARMER EARNED, DROPPED 5% FROM 1982 TO 1994, WHILE GROCERY PRICES FOR DAIRY PRODUCTS ROSE 30%.

SOME BLAME THE SITUATION ON GREEDY RETAILERS.

>> SOMEBODY IN THEILK BUSINESS IS MAKING MONEY.

THE SUPERMARKETS ARE MAKING THE MONEY.

FARMERS ARE BEING PAID $1.10, $1.20 A GALLON, CONSUMERS ARE PAYING $2.50 A GALLON.

>> OR IS IT THE PROCESSOR'S FAULT?

>> MIDDLEMEN ARE MAKING ABOUT WHAT MIDDLEMEN IN OTHER INDUSTRIES ARE MAKING, BUT BECAUSE FARMERS ARE MAKING SO LITTLE, THE MIDDLEMAN TAKE LOOKS LITTLE TO COMPARISON.

>> OR IS IT OUR OWN FAULT.

>> MILK IS CHEAP BECAUSE CONSUMERS HAVE EXERCISED THEIR CLOUT TO ENCOURAGE ENOUGH OF A STA OF OVERPRODUCTION THAT THE MILK PRICES ARE DOWN AS LOW AS THEY CAN GET.

>> THERE IS NO CULPRIT IN THE CURRENT MILK PRICING SITUATION.

BASICALLY CONSUMERS HAVE BEEN THE ONES THAT HAVE BEEN THE PRIMARY BENEFICIARIES OF LOW MILK PRICES OVER THE LAST SEVERAL YEARS.

>> AMERICANS HAVE LONG ENJOYED THE CHEAPEST FOOD OF ALL THE INDUSTRIALIZED NATIONS.

WHY?

WELL, ONE THEORY IS THAT THE GOVERNMENT'S BEEN HELPING US WITH OUR GROCERY BILL AS PART OF A DELIBERATE POLICY OF SOCIAL ENGINEERING.

>> WELL, THE NATIONAL CHEAP FOOD POLICY IS NOT AN AMERICAN INVENTION, IT'S A WESTERN EUROPEAN INVENTION, AND THEIR PICY PLANNERS DECIDED THAT IF URBAN WORKERS DID NOT SPEND MONEY ON FOOD, THEY WLD SPEND IT ON URBAN UCTS AND SERVICES.

WHEN THE U.S.

BECAME URBAN, 1920 CENSUS RECORDS THAT, OUR POLICY PLANNERS THEN FOLLOWED THE EUROPEAN MODEL.

WE ADOPTED A CHEAP FOOD POLICY.

THE ONLY DIFFERENCE IS THAT WE HAVE BEEN FAR MORE SUCCESSFUL AT IT THAN ANYBODY ELSE AND OUR FOOD, THEREFORE, COSTS LESS IN PROPORTION THAN IN ANY OTHER WESTERN COUNTRY.

>> URBAN AREAS HAVE PLAYED ANOTHER KEY ROLE IN DETERMINING HOW VERMONT MILK IS SOLD.

THE CITIES OF SOUTHERN NEW ENGLAND ARE VEONT'S MAR DAIRY MARKET, AS THEY'VE BEEN FOR OVER 100 YEARS.

BY THE TURN OF THE CENTURY THE DISTANT URBAN THIRST FOR VERMONT'S FLUID MILK WAS UNQUENCHABLE.

BUT FARMERS SOON DISCOVERED THAT IT TOOK MORE THAN RAILROAD TRACKS TO GET THEIR PRODUCT TO MARKET.

A SOPHISTICATED NETWORK OF HANDLERS AND MIDDLEMEN ALL WANTED A CUT OF THE ACTION.

IN RESPONSE, FARMERS FOUND STRENGTH IN NUMBERS BY JOINING COOPERATIVE MARKETING ASSOCIATIONS.

THOUGH THE NEW MEMBER-OWNED CO-OPS WERE ABLE TO FORCE PRICE CONCESSIONS IN FAR OFF BOSTON, THEY SUFFERED SOME EARLY SETBACKS CLOSER TO HOME.

>> IN THE FIRST PART OF THE CENTURY CO-OPS TRIED TO SET AND MAINTAIN THE PRICE OF MILK.

HOWEVER, THEY WERE OFTEN UNDERCUT BY FARMERS WHO DID NOT BENG TO ERATIVES.

THIS WOULD SEND THE PRICE OF MILK SPIRALING DOWNWARD.

>> DAIRY CO-OPS HAVE HAD A STORMY HISTORY.

MILK STRIKES, BANKRUPTCIES AND MERGERS HAVE TESTED THE SYSTEM OVER THE YEARS.

TAKE THE CRISIS THAT RECENTLY STRUCK ONE OF VERMONT'S OLDEST AND MOST SUCCESSFUL COOPERATIVES.

A CRISIS THAT CHALLENGED THE CONCEPT OF FARMER-OWNED MARKETING WHILE REVEALING THE STARK REALITIES OF SELLING MILK.

THE OLD HILL FARMS OVERLOOKING THE SLEEPY VILLAGE OF CABOT ARE SURVIVORS TODAY DUE IN LARGE MEASURE TO SOMETHING THAT HAPPENED IN 1919.

AT A TIME WHEN THE BOSTON MILK MARKET MUST HAVE SEEMED AS REMOTE AS MARS, A HANDFUL OF CABOT FARMERS TOOK CONTROL OF THEIR OWN DESTINY.

>> A GROUP OF FAMILIES GOT TOGETHER AND DECIDED TO FORM A COOPERATIVE, AND THEY INVESTED $30 PER COW OR SOMETHING AND STARTED THE CREAMERY.

>> THE CHARACTER OF THE PEOPLE WHO FARM THE HILLS AROUND CABOT DERIVES FROM THE CHARACTER OF THIS PLACE.

CARVED AS IT WAS OUT OF A SHARPLY DEFINED UPLAND VALLEY, THE CABOT CREAMERY CAME TO REPRESENT THE INDEPENDENCE AND SELF-DETERMINATION OF A COMMUNITY.

EVENTUALLY THE LOCAL IDENTITY AND THAT OF ITS PRIMARY INDUSY BECAME ONE AND THE SAME.

THE CREAMERY GAVE LOCAL FARMERS LIKE KNIGHT ABBOTT AND ARNO TEBBES THEIR FIRST LESSONS IN COOPERATION AND PRIDE.

>> EVERYONE THAT LIVED IN CABOT SHIPPED THEIR MILK TO CABOT, AND THERE WERE HARD TIMES ALONG THE WAY.

I KNOW THERE WAS ONE TIME WHEN MY FATHER AND SOME OTHER FARMERS HAD TO SIGN A NOTE WITH THE CALEDONIA BANK SO EVERYBODY COULD GET PAID FOR THEIR MILK.

>> WHEN I STARTED SHIPPING THERE WAS A PRIDE IN BEING IN THE OWNERSHIP OF IT.

YOU STILL HAD A VOICE IN WHAT WAS HAPPENING THERE.

IT PAID US DIVIDENDS, WE GOT A LITTLE MONEY BACK.

THAT MONEY, IF WE SOLD OUT AND RETIRED, OVER A PERIOD OF SEVEN YEARS THAT WOULD FLOW INTO OUR RETIREMENT, WHICH WAS EXCELLENT BECAUSE FARMERS DON'T PUT A LOT AWAY FOR RETIREMENT ANYWAY.

SO IT WAS GOOD.

AND IT JUST GAVE YOU A STRONG, HEALTHY FEELING BEING THERE AND BELONGING TO IT.

>> IT WAS A PERFECT MATCH.

HARD WORKING LOCAL PRODUCERS SUPPLYING THE SEEMINGLY ENDLESS NEEDS OF A WELL-RUN NEARBY PROCESSING PLANT WHICH THEY THEMSELVES OWNED, AND FOR THE BETTER PART OF A CENTURY THE MARRIAGE WORKED.

>> SO WHAT WENT WRONG?

THIS GEM, THIS MODEL OF COOPERATIVE SPIRIT, WHERE DID IT GO AFOUL?

IT WAS LACK OF COMMUNICATION, LACK OF GETTING THE ENTIRE MEMBERSHIP TO UNDERSTAND THE COMPLEXITIES AND THE CHANGES IN THE MARKET.

>> BILL DAVIS SPENT HIS FIRST 11 YEA AT CABOT AS MARKETING DIRECTOR.

OVER THAT TIME HE SAW A PATTERN OF DECLINING PROFITS FOR PROCESSORS LIKE CABOT THAT SUPPLIED COMMODITY PRODUCTS TO BRAND-NAME COMPANIES.

>> WE WERE A COMMODITY COMPANY IN AN AREA WITH MUCH HIGHER COSTS THAN ANYBODY ELSE AND EITHER WE TOOK A RISK AND GOT INTO THE VALUE ADDED CONSUMER PRODUCTS BUSINESS OR FOLD UP OUR TENT.

WE WERE LITERALLY AT THAT POINT IN TIME.

WE HAD COMMITMTS LIKE A 93,000 SQUARE OT WAREHOUSE.

WE NEEDED BOTH A PLACE TO STORE AND AGE OUR CHEESE, SO WE BUILT ONE.

THAT WAS REAL HIGH-STAKES GAMBLE FOR THE OWNERS AND I THINK THAT MANY OF THEM KNEW THAT.

>> I MEAN, THAT WAS DURING THE 80S.

A LOT OF BUSINESSES OVERINVESTED AND I THINK HE OVERINVESTED.

>> MANY OF THE MEMBERS RECOGNIZED THIS WAS A LO-TERM INVESTMENT AND KEEP THE MONEY IN THE COMPANY AND WORKING, AND OTHER MEMBERS SAW IT AN OPPORTUNITY TOAVE SOME CASH TO HELP THEM ON THEIR OWN FARMS.

>> HERE YOU HAVE FARMERS THAT ARE SEVERELY ECONOMICALLY STRESSED TO BEGIN WITH, AND TO SAY THAT YOU'RE GOING TOAVE TO SPEND 50 CENTS MORE OUT OF EVERY HUNDRED POUNDS OF MILK YOU SHIP TO KEEP CABOT GOING, MOST OF THE FARMERS COULDN'T AFFORD TO DO THAT.

>> WE BROUGHT IN A COUPLE OUTSIDE CONSULTANTS WHO SAID, "YOU'VE GOT A GREAT STORY TO TELL.

IF YOU'RE GOING TO BE A CONSUMER PRODUCTS COMPANY, YOU NEED TO GET SOME ME EQUITY IN HERE.

WE RECOMMEND THAT YOU TAKE A LOOK AT SELLING PART OF THE COMPANY."

THIS WAS NOT ANYTHING THAT WAS EITHER UNDERSTD OR SUPPORTED BY THE BOARD.

BECAUSE WE HAD BEEN DOING SO WELL THEY SAID, "NO, LET'S KEEP IT ALL, WE WANT 100% OWNERSHIP, 100% CONTROL."

D WE WENT ON WITH BUSINESS.

AND THEN ALL OF A SUDDEN MILK PRICES WENT TO UNPRECEDENTED HIGH LEVELS WHICH WERE GOOD FOR THE DAIRY FARMERS, BUT INCREASED THE COSTS TO MAKE CHEESE BECAUSE THE HIGH MILK PRICE FARMERS PRODUCED MORE PRODUCT.

WE MADE EXTRA CHEESE AND AS A CO-OP WE HAD WAY TOO MUCH PRODUCT TO MARKET.

SO THE BAN SAID, "YOU CAN'T DO THIS, YOU NEED SOME EQUITY.

YOU CAN'T KEEP PAYING CASH OUT.

YOU NEED TO LEAVE TH CASH IN THE COMPANY."

SOME OF THE OWNERS SAID, "LET'S GET SMALLER AND THEN WE CAN FINANCE IT.

LET'S KEEP IT JUST THE W IT IS."

AND THEN THERE WAS ANOTHER GROUP THAT SAID, "LET'S PUT MORE MONEY IN."

>> THIS BOARD OF DIRECTORS IS WILLING TO WORK WITH ALL OF THE MEMBERSHIP IN MAKING SURE THAT WHAT WE COME UP WITH NEXT FOR A PLAN IS ONE THAT DOES REPRESENT EVERYBODY.

>> THE BOARD DECIDED THAT THE BEST WAY TO KEEP THE CO-OP WAS TO GET OUTSIDE RESOURCES TO FINANCE THE MANUFACTURING MARKETING COMPANY.

>> THE NEWS FIRST CAME OUT THAT THEY WERE LOOKING FOR OUTSIDE INVESTORS.

WE SURMISED THAT THERE WAS A PROBLEM.

>> I MEAN, IT WAS A TOTAL SHOCK TO ALL OF US WHEN THEY STARTED SAYING, "WE'RE GOING TO HAVE TO SELL THIS PLACE."

>> LOCAL FARMERS THAT HAD A REAL ATTACHMENT TO THE CO-OP AND HAD AN EMOTIONAL TIE WITH THE CO-OP DIDN'T LIKE THAT SOLUTION, AND SO WE HAD A VERY LONG AND BITTER STRUGGLE INTERNALLY WITH THE BOARD AND THE MEMBERSHIP TRYING TO DECIDE WHAT THEY WANTED TO BE.

>> ON JULY 31, 1992, FOLLOWING A SERIES OF SKIRMISHES BETWEEN MANAGEMENT, BOARD AND MEMBERSHIP, THE CABOT FARMERS COOPERATIVE CREAMERY BECAME A SUBSIDIARY OF THE REGION'S LARGEST DAIRY CO-OP, AGRI-MARK.

FOR MANY THE MERGER MEANT BEING ABLE TO MOVE AHEAD WITH THE NEW CABOT.

OTHERS SAW IT AS A BETRAYAL.

>> I JUST DIDN'T WANT TO DEAL WITH IT, SO I SOLD THE HERD AND GOT OUT.

>> KNIGHT ABBOTT HAD COME OUT OF RETIREMENT AND BOUGHT A NEW HERDF COWS JUST TO BE ABLE TO VOTE AGAINST THE MERGER.

HE REFUSED TO SIGN WITH AGRI-MARK AND LOST MOST OF HIS EQUITY.

>> THEY GAVES AN OPPORTUNITY TO TAKE 50 CENTS ON THE DOLLAR ONETTING OUT.

>> ARNOLD TEBBETTS QUIT THE CO-OP HIS FATHER HELPED START IN 1919.

HE LOST TWO-THIRDS OFHE EQUITY HE BUILTUST TO BE@AB TO SELL HIS MILK ELSEWHERE.

>> WE WERE FED UP WITH THE WHOLE SITUATION, AND DIDN'T WANT TO BE INVOLVED ANYMORE AND DIDN'T WANT TO SUPPORT WHAT WAS GOING ON.

>> WE WERE HEARTBROKEN.

WE HAD SHIPPED OUR MILK TO CABOT FOR 15 YEARS.

THEN WHEN WE FINALLY LOST IT, A PART OF US WAS LOST IN IT TOO, AND IT WAS THE BEGINNING OF US NOT FEELING GOOD ABOUT BEING IN THE DAIRY BUSINESS.

>> IN THE AFTERMATH OF THEIR DEFEAT IN THE MERGER BATTLE, BOB AND LEE LIGHT WOULD EVENTUALLY LEAVE DAIRY FARMING ALTOGETHER.

>> I MEAN, MAYBE WE SHOULD HAVE BEEN JUST THIS LITTLE COMPANY THAT SOLD DAIRY PRODUCTS IN VERMONT, AND THAT'S FINE.

AND THAT WOULD HAVE BEEN ALL RIGHT IN A WORLD THAT WASN'T CHANGING.

>> AS FOR BILL DAVIS, LIFE AS A CORPORATE DIVISION HEAD WOULD MEAN A MORE RECEPTIVE AUDIENCE FOR HIS GOSPEL OF MARKET PRAGMATISM AND CHANGING TIMES.

>> THAT'S CLEARLY GOING TO JUMP OUT, SO THAT'S FINE.

>> WE ARE IN A CAPITALISTIC SOCIETY.

SOME OF US DON'T LIKE IT, SOME OF US DO, BUT THE REALITY IS TT'S WHERE WE AREITH AGRICULTURE, SUPPLY AND DEMAND.

WE ARE COMPETING NATIONALLY AND SOON IERNATIONALLY, AND WE NEED TO UNDERSTAND THAT COMPETITION AND FIGURE OUT WAYS TO MANEUVER AROUND IT.

>> THE FINANCIAL STAKES HAVE FAR SURPASSED ANYTHING THE FOUNDERS OF THIS CREAMERY EVER IMAGINED.

WHERE ONCE QUALITY WAS ENOUGH TO KEEP FARMERS COMPETITIVE, THE KEY TO SURVIVAL IN TODAY'S MARKETPLACE IS SCALE.

IN 1931 THERE WERE 33 COOPERATIVE CREAMERIES BASED IN VERMONT.

NOW THERE'S ONLY ONE.

THE 567 MEMBERS OF THE ST.

ALBANS COOPERATIVE CREAMERY REPRESENT BARELY A THIRD OF THE FARMS IN THE STATE.

MOST OF THE OTHERS SELL THEIR MILK TO OUT-OF-STATE COMPANIES THAT KEEP THEIR COMPETITIVE EDGE THROUGH SHEER SIZE.

>> HI, WELCOME TO AI-MARK.

>> AGRI-MARK IS THE LARGEST DAIRY COOPERATIVE IN NEW ENGLAND.

HERE FROM ITS SUITE OF MODERN OFFICES SUBURBAN METHUEN, MASSACHUSES, THE CO-OP OVERSEES THE SHIPMENT OF 148 TANKER LOADS OF MILK A DAY FROM OVER 2,000 FARMS THROUGHOUT THE NORTHEAST.

THAT'S 2 AND A HALF BILLION POUNDS OF MILK A YEAR, 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS A YEAR.

>>'M KEEPING TRACK OF ABOUT A MILLION POUNDS OF MILK PER DAY THAT'S PICKED UP FROM OUR MEMBERS.

IT'S DELIVERED TO DIFFERENT CUSTOMERS ALL OVER NEW ENGLAND.

>> WE DO TAKE THIS HOME WITH US ON THE WEEKENDS AND AT NIGHT.

WE'RE ON CALL 24 HOURS A DAY.

>> THE COOPERATIVE BUYS MILK FROM 800 VERMONT FARMS.

AGRI-MARK MEMBERSHIP MEANS FARMERS CAN DO BUSINESS WITH INDUSTRY GIANTS LIKE H.P.

HOOD AND KRAFT BY VIRTUE OF THE CONTRACTS THEIR CO-OP NEGOTIATES WITH THESE LARGE PROCESSORS.

>> LET ME PUT THAT ONE TOGEER AND THEN I'LL G BACK TO YOU, OKAY?

VERY GOOD.

>> IT'S A SYSTEM THAT WORKS FOR THOUSANDS OF FARMERS, TAKING ADVANTAGE OF COLLECTIVE MIGHT TO REACH DISTANT, LUCRATIVE MARKETS, BUT IT'S NOT A SYSTEM THAT WORKS FOR EVERYBODY.

MANY VERMONT FARMERS ARE FEELING INCREASINGLY DISENFRANCHISED BY THE GROWTH OF WHAT USED TO BE A SMALL LOCAL ORGANIZATION.

AS THE DAIRY INDUSTRY HAS GROWN, MANY SAY IT HAS GROWN BEYOND VERMONT FARMERS' ABILITY TO UNDERSTAND IT OR CONTROL IT.

ACTIVATED BY 10 YEARS OF STAGNANT MILK PRICES, SOME FARMERS ARE TAKING ON THEIR CO-OP.

>> I THINK THE TAIL HAS BEEN WAGGING THE TIGER TOO LONG.

>> WE'RE GETTING T SAME PRICES WE WERE WHEN THEY STARTED IN 1980.

>> IN THE SPRING OF 1993 AGRI-MARK MEMBERS KAREN SHAW AND FORREST FOSTER SUED FOR DISCLOSURE OF THE SALARIES OF CO-OP MANAGERS.

THEY ARGUED THAT THE CO-OP WAS BEING RUN FOR THE BENEFIT OF MANAGEMENT, NOT FARMERS.

FOSTER AND SHAW STATED THAT AS MEMBER OWNERS OF THE COOPERATIVE, IT WAS THEIR RIGHT TO KNOW THE SALARIES OF THEIR EMPLOYEES.

AGRI-MARK REPLIED THAT SINCE FOSTER AND SHAW WERE MEMBERS BUT NOT SHAREHOLDERS IN THE COMPANY, THE CO-OP DID NOT HAVE TO REVEAL THE SALARIES.

>> THE WAY I SEE THE PROBLEM IS THAT ST OF US WORK A LOT OF HOURS AND DON'T MAKE A LOT OF MONEY.

>> THAT SUMMER AGRI-MARK FARMERS FROM VERMONT'S NORTHEAST KINGDOM MET TO DISCUSS BRINGING THE SALARY ISSUE BEFORE THEIR BOARD OF DIRECTORS.

>> WE AS THE BOARD OF DIRECTORS AREN'T GOING TO KNOW UNLESS WE DISCUSS IT.

I HAVE NO PROBLEM WITH DISCUSSING IT.

>> I THINK THE MAIN FEELING IS WE WANT TO BE SURE THAT THEY'RE EARNING THEIR PAY.

>> WHAT DO THE CO-OPS IN CALIFORNIA PAY THEIR MANAGEMENT?

THAT WHOLE INDUSTRY COMPETES FOR JOBS AMONG THEMSELVES.

>> MAYBE WE ARE OVERPAYING OURS.

MAYBE WE'RE UNDERPAYING THEM, BUT WE DON'T KNOW.

>> WOULD YOU LIKE TO HAVE ME COME TO YOUR FARM AND SAY, "I WANT TO KNOW WHAT YOU EARN ON YOUR FARM, WHAT YOU MAKE FOR A PROFIT, HOW MUCH IT COSTS YOU TO MAKE IT AND HOW MUCH YOU'VE ENDED UP WITH."

IS YOUR MANAGEMENT WRONG YOU DID IT FOR?

YOU AREN'T GOING TO SIT THERE AND TELL ME I MAKE SO MANY DOLLARS.

>> I'LL PUT IT THIS WAY.

THAT IS NONE OF YOUR BUSINESS, BUT THIS IS OUR BUSINESS BECAUSE THIS IS OUR COMPANY.

WE OWN IT.

>> ONE YEAR LATER A U.S.

DISTRICT COURT RULED IN FAVOR OF FOSTER AND SHAW.

AGRI-MARK DISCLOSED THE PREDICTABLY HIGH SALARY OF ITS GENERAL MANAGER, A SALARY THAT THE COMPANY CLAIMS IS SIMPLY A PART OF THE COST OF DOING BIG BUSINESS.

>> THAT SALARY IS BASED UPON THE DUTIES AND RESPONSIBILITIES OF A GENERAL MANAGER WHO'S RUNNING A $400 MILLION BUSINESS.

THOSE DUTIES AND RESPONSIBILITIES ARE DIFFERENT FROM WHAT A FARMER WHO'S MILKING 50 OR 60 COWS WOULD HAVE.

IT'S A VERY DIFFICULT TASK TO RUN A MILK MARKETING COOPERATIVE.

WE BASICALLY HAVE TO PICK UP ALL OUR PRODUCERS' MILK EVERY DAY AND FIND A HOME FOR IT AT THE HIGHEST POSSIBLE PRICE.

WEVER, AT THE SAMEIME, WE HAVE TO MEET THE NEEDS OF OUR MEMBER OWNERS, AND TEN THOSE NEEDS ARE A CONFLICT.

>> SOME AGRI-MARK MEMBERS APPLAUDED THE RELEASE OF SALARY INFORMATION; OTHERS CONDEMNED THE DECISION.

THE SITUATION REFLECTS ONE OF THE MAJOR HURDLES FARMERS FACE IN CONTROLLING THE SALE OF THEIR PRODUCT, AN INABILITY TO REACH CONSENSUS AMONG THEMSELVES.

>> YOU HAVE MANY MEMBER OWNERS OF A COOPERATIVE AND THEY HAVE TO AGREE ON THESE TYPE OF ISSUES.

WHENEVER YOU HAVE A LARGE GROUP TOGETHER, THAT CAN BE A DIFFICULT TASK.

>> IF EVERYBODY WANTS TO DO SOMETHING DIFFERENT THAN EVERYBODY ELSE AND WE'RE NOT WILLING TO GIVE UP A LITTLE BIT OF OUR FREEDOMS TO BAN TOGETHER TO ACHIEVE SOME OVERALL GOOD, WE'RE REALLY GOING TO BE NONCOMPETITIVE IN THE DAIRY WORLD.

>> YORK, PENNSYLVANIA, JUN 1993.

IN A FIRST OF ITS KIND EVENT FARMERS FROM AROUND THE NATION HAVE GATHERED FOR A DAIRY SUMMIT.

AT ISSUE IS THE CONTINUED NOSEDIVE OF MILK PRICES AND THE LOSS OF FAMILY FARMS THAT GOES WITH IT.

>> THE AVERAGE FAMILY FARM IS BEING SQUEEZED HARDER AND HARDER UNTIL THERE'S FEWER AND FEWER OF US LEFT.

>> WE SEE CORPORATE RMING LOOMING ON THE EDGE.

THEY'VE PRETTY WELL DEVOURED THE POULTRY INDUSTRY, THEY'RE WORKING ON THE SWINE INDUSTRY.

>> WE HAVE AN AGING DAIRY INFRASTRUCTURE AND AN AGING FARM POPULATION.

WE DON'T HAVE YOUNG PEOPLE COMING IN THAT WANT TO TAKE OVER THE FAMILY FARM.

THERE'S NO INCENTIVE.

>> THE SUMMIT HAS BEEN ORGANIZED BY SENATE AGRICULTURAL COMMITTEE CHAIRMAN, VERMONT SENATOR PATRICK LEAHY.

IN ATTENDANCE IS U.S.

AGRICULTURE SECRETARY MIKE ESPY.

>> AS YOU KNOW, WE ARE DEDICATED TO BEING FARMER FRIENDLY, AND PART OF THAT FARMER FRIENDLINESS IS DOING EVERYTHING WE CAN DO TO TRY TO IMPROVE FARM INCOME.

THAT'S OUR NUMBER ONE PRIORITY.

>> MR.

CHAIRMAN, MR.

SECRETARY, I'M DOUG CLARK FROM FRANKLIN, VERMONT.

I WOULD LIKE YOU PEOPLE TO TAKE BACK WITH YOU FO IMPORTANT THINGS.

NUMBER ONE, I'M T WILLING TO HAVE MY FARM TAN AWAY FROM ME.

NUMBER TWO, I'M NOT WILLING TO GIVE MY FARM AWAY.

NUMBER THREE, WE MUST HAVE A SUPPLY MANAGEMENT SYSTEM OF SOME KIND.

AND, NUMBER FOUR, WE HAVE TO HAVE OUR COST OF PRODUCTION PLUS A REASONABLE PROFIT.

>> MAYBE THE BEST THAT CAN BE SAID FOR THE DAIRY SUMMIT IS THAT IT OCCURRED.

>> WE NEVER HAD A SECRETARY OF AGRICULTURE AND A CHAIRMAN OF THE COMMITTEE WHO WERE WILLING TO SIT DOWN AND LISTEN LIKE THIS.

>> IT DEPENDS ON WHO YOU TALK TO, THEY SEEM TO HAVE A DIFFERENT OPINION.

SO I'M JUST HERE TO LISTEN TO EVERYONE IN ORDER TO CONSTRUCT A POLICY THAT IS FAIR AND EQUITABLE.

>> WE WANT TO DO EVERYTHING WE CAN DO TO SUPPORT PRODUCTION AGRICULTURE.

EVERYTHING WE CAN DO.

>> THE WORST THAT CAN BE SAID ABOUT THE SMIT IS THAT IT WOD HAVEITTLE IMMEDIATE IMPACT ON THE HARD ISSUES FACING TODAY'S DAIRY INDUSTRY.

WHY?

WELL, SOME SAY IT'S BECAUSE EVEN IF FARMERS CAN GET TOGETHER IN ONE ROOM, THEY STILL CAN'T GET TOGETHER ON A SINGLE POINT OF VIEW.

>> UNITY IS EXTREMELY IMPORTANT IF WE'RE GOING TO ACTUALLY HAVE DAIRY PROGRAMS THAT CAN BENEFIT US HERE IN THE NORTHEAST.

>> I VOTED AND I LOOKED ACROSS AND I GOT NO VOTE.

>> IF WE DO NOT COME AWAY FROM HERE TODAY WITH SOME KIND OF A UNITY IN THE FORM OF A PROGRAM THAT WE WANT FOR DAIRY FARMERS, WE'RE NOT GOING TO BE HERE MUCH LONGER, AND WE'RE NOT GOING TO NEED THE PROCESSORS TO PROCESS OUR PRODUCT BECAUSE THERE WON'T BE ANYTHING.

>> NOBODY IS GOING TO GET THE ABSOLUTE PERFECT PLAN BECAUSE THERE IS NO ABSOLUTELY PERFECT GOVERNMENT PLAN FOR ANY FARMERS AND FARMERS HAVE GOT TO UNDERSTAND THAT'S NOT GOING TO HAPPEN.

>> I THINK THAT IN THE AGRICULTURAL COMMUNITY THERE ARE VERY DIVERSE VIEWS.

THE POLITICIANS THRIVE ON THAT BECAUSE IF THE FARMERS ARE DIVIDED, THAT MEANS THEY DON'T HAVE TO DO ANYTHING BECAUSE THEY CAN'T GET A CLEAR-CUT SOLUTION TO THE PROBLEM.

>> THERE'S JUST NOT ENOUGH FARMERS AND I DON'T THINK THERE'S ENOUGH PEOPLE IN CGRESS AND SENATE THAT HAVE FARM INTERESTS AT HEART.

>> 100 YEARS AGO FARMERS WERE AN IMPORTANT POLITICAL BLOCK BECAUSE YOU HAD MILLIONS OF FAMILY FARMERS, AND THEIR REPRESENTATIVES HAD TO LISTEN TO THEM IF THEY WANTED TO GET RE-ELECTED.

WHAT WE KNOW NOW WITH THE DECLINE OF FAMILY FARMS, FARMERS DO T HAVE THE POLITICAL CLOUT.

TWO YEARS AGO THERE WAS A GUY FROM WISCONSIN WHO I HAVE DISAGREEMENTS WITH, BUT HE COMES FROM THE DAIRY FARM STATE, AND HE GOT ON THE FLOOR OF THE HOUSE AND HE WAS TALKING ABOUT THE SERIOUS PROBLEMS FACING FAMILY FARMERS, DAIRY FARMERS, AND WITHIN THE GROUP OF MEMBERS IN THE CONGRESS WHO WERE LISTENING TO THESE GUYS WERE GOING, "MOO."

THEY THOUGHT IT WAS ALL VERY FUNNY.

>> IF WE COULD COME BACK IN ORDER.

>> WHAT NEITHER THE GOVERNMENT NOR FARMERS APPEARO BE TAKG VERY SERIOUSLY IS THAT UNLESS SOME KIND OF CONCENSUS IS REACHED VERY SOON, A VITAL ECONOMIC SECTOR MAY SUFFER BEYOND THE POINT OF REPAIR.

>> IN NEW YORK WE'VE LOST OVER 10,000 DAIRY PRODUCERS SINCE 1980.

>> THEY HAVE SEVERAL CHOICES, OR DO THEY?

THEY CAN CONTROL T AMOUNT OF MK PRODUCED, THEREBY INCREASING ITS VALUE AND THE FARMER'S PROFIT MARGIN.

>> WE NEED A TWO-TIER SUPPLY MANAGEMENT PROGRAM THAT WILL GIVE US A COST OF PRODUCTION PLUS A PROFIT.

WE HAVE BEEN ASKING FOR THIS FOR YEARS.

>> BUT SELF-REGULATION SEEMS AS UNLIKELY A PROSPECT AS FEDERAL REGULATION.

THE GOVERNMENT CAN FURTHER SUBSIDIZE FARM PRODUCTS, BUT GOVERNMENT IS TRYING TO CUT COSTS, NOT INCREASE THEM.

THEY CAN DEVELOP FOREIGN MARKETS, BUT DAIRY PRODUCTS ARE PERISHABLE AND MANY COUNTRIES PROTECT THEIR OWN DAIRY INDUSTRIES WITH TRADE BARRIERS, OR THEY CAN SIMPLY SIT BACK AND LET FREE MARKET COMPETITION DECIDE WHICH FARMERS WILL STAY IN BUSINESS AND WHICH ONES WON'T.

WHATEVER THE CHOICE, WHOEVER PRODUCES MILK THE CHEAPEST WAY MAY HAVE THE BEST CHCE OF SURVIVING.

>> DAIRY FARMERS ARE CURRENTLY GUARANTEED A MARKET FOR THEIR PRODUCT.

NO MATTER HOW MUCH MILK THEY PRODUCE, SOMEONE WILL BUY IT.

THE FARMERS WHO GROW VERMONT'S OTHER AGRICULTURAL PRODUCTS AREN'T SO FORTUNATE.

WHAT THEY GROW THEY ALSO SELL.

AND THEY KNOW SOME THINGS ABOUT THE FREE MARKET THAT DAIRY FARMERS DON'T.

>> I THINK THAT PART OF THE PROBLEM THE DAIRY INDUSTRY HAS IS THEY'VE GIVEN AWAY THEIRARKETING TO SOMEONE ELSE.

>> HANK BISSELL IS TYPICAL OF THE HARD HEADED ENTREPRENEURIAL REALISTS WHO INHABIT VERMONT'S NONDAIRY FARMING SECTOR.

WITHOUT THE BENEFIT OF A MARKETING INFRASTRUCTURE, SUCCESS IN THE WHOLESALE VEGETABLE BUSINESS RELIES ON THE ABILITY TO SENSE THE BUYING MOOD OF YOUR CUSTOMERS AND POUNCE ON IT.

>> WHAT THE MARKET DEMANDS IS WHAT DRIVES MY BUSINESS, DETERMINES WHAT I GROW, WHAT QUALITY IT NEEDS TO BE BECAUSE IF I CAN'T SELL SOMETHING, NO MATTER HOW GOOD IT IS, IF I CAN'T SELL SOMETHING, THERE'S NO MONEY.

THE BOTTOM LINE IS I'M MAKING A LIVING.

I MAY BE REALLY THRILLED ABOUT GROWING WINTER SQUASH AND PUMPKINS, BUT IF THERE'S NO ONE TO BUY IT OR BUY THE QUANTITY, I SWALLOW THE LOSS.

>> I AM GROWING FOOD FOR OTHER PEOPLE.

WHAT THEY WANT DRIVES WHAT I GROW AND HOW I GROW IT.

>> CONTROL OVER A FARMER'S OWN SALES COMES AT A PRICE.

ENTREPRENEURSHIP MEANS ALL KINDS OF ADDED RESPONSIBILITIES, LIKE MARKET ANALYSIS AND PRODUCT DEVELOPMENT.

>> THE PROBLEM WITH CAULIFLOWER IS PEOPLE DON'T WANT A WHITE VEGETABLE.

THE ONLY THING THAT LLS ULIFLOWER IS THIS BRILLIANT WHITE CAULIFLOWER.

>> I REMEMBER THE FIRST TIME I HAD TO DO SHOPPING FOR MYSELF AND I WENT TO THE GROCERY STORE AND I WAS JUST STRUCK BY THIS CAULIFLOWER.

IT WAS WHITER THAN A PIECE OF OFFICE PAPER.

IT WAS JUST GLOWING THERE, D I KNOW I BOUGHT IT BECAUSE I WAS JUST SO STRUCK BY THAT ITEM.

AND TH'S WHYEOPLE BUY THE CAULIFLOWER BECAUSE IT'S ALMOST A MYSTICAL EXPERIENCE TO SEE THIS BRIGHT WHITE THING.

AND I'VE JUST BEEN STRUGGLING WITH IT FOR YEARS,ETTING TT WHITENESS.

>> UNCOMPROMISING QUALITY CONTROL GIS THE BILS ONE OF THE FEW ADVANTAGES THEY HAVE TO COMPETE WITH LARGE OUT-OF-STATE GROWERS.

>> MY PHILOSOPHYAS ALWAYS BEEN A GOOD PRODUCT SELLS ITSELF, AND I'VE SPENT VERY LITTLE ON ADVERTISING AND FOUND THAT IF I PRODUCE SOMETHING GOOD, THEY'LL COME BACK FOR IT.

THE OTHER ING IS GETTING THE QUALITY CROP THAT YOU NEED AT A REASONABLE COST.

YOU CAN JUMP THROUGH ALL SORTS OF HOOPS AT GREAT EXPENSE, BUT YOU MAY NOT MAKE ANY MONEY AT IT.

YOU STILL HAVE TO MAKE SOME MONEY ON IT YOURSELF.

THERE'S GOT TO BE SOME LEFT OVER FOR ME.

>> COMPETITION IS THE NAME OF THE GAME.

WE TRY TO STAY AHEAD OF THE GAME.

IT'S A VERY SMALL CHAIN FROM THE FIELD, TO THE PACKING SHED, TO ME AND THEN TO THE CONSUMER, TRE'S A LOT OF ACCOUNTILITY.

>> WHETHER IT'S SEING AT A CURBSIDE FARMERS MARKET.

>> SELLING DIRECTLY TO THE CONSUMERS, YOU GET SOME VERY DIRECT FEEDBACK.

>> OR HOCKING WHOLESALE ORDERS FROM HER CONVERTED BEDROOM OFFICE.

>> HI THERE.

SURE.

IT'S PTTY MUCH THE SAME LIST.

>> LIKE HER PARTNER, CECELIA BISSELL'S MARKETING PRIORITIES ARE CLEAR AND TO THE POINT.

>> THEUSTOMER IS ALWAYS RIGHT, AND WE HAVE TO CONTINUALLY BE VIGILANT IN SERVING THEM WELL AND COMMODATING THEIR SPECIAL NEEDS, WCH I THINK SMALL FARMERS CAN LEND THEMSELVES TO DOING.

NORMALLY WE SELL CARROTS IN A 50-POUND BAG, BUT IF SOMEBODY ASKED US FOR ONLY 10 POUNDS, WE WILL DO THAT.

THEY MAY BE CHARGED A LITTLE BIT MORE, BUT WE WILL DO IT.

WE SMILE AND SAY, "SURE."

>> TO COMPETE WITH SUPERMARKET CHAINS THAT CAN OFFER THE LARGEST AND CHEAPEST SELECTION, LOCAL GROWERS LIKE THE BISSELLS OF LEWIS CREEK FARM ARE CAPITALIZING ON THE THINGS ONLY THEY CAN OFFER.

FRESHNESS, TOP QUALITY AND SOMETHING MORE.

>> IT'S THAT PERSONAL CONTACT THAT ULTIMATELY MAKES THE SALE, MAKES THE DIFFERENCE.

IT'S THE INTEGRITY OF THE PERSONAL RELATIONSHIPS THAT PEOPLE GET OUT OF BUYING LOCALLY.

THIS FEELING OF SOME SORT OF PERSONAL CONNECTION WITH THE PRODUCT OR THE PEOPLE THAT GREW IT THAT IS THE SATISFACTION THAT SELLS LOCAL PRODUCT.

>> SELLING LOCAL PRODUCTS MEANS MORE THAN JUST SETTING UP A ROADSIDE STAND.

IT MEANS GETTING OUT AND MEETING THE CUSTOMER, SOMETHING THAT MANY VERMONT FARMERS ARE DOING FOR THE FIRST TIME.

(MUSIC PLAYING) >> LIKE TO TRY SOME VEONT TURKEY?

THIS TELLS ABOUT OUR FARM.

WE GROW OUR OWN TURKEYS.

WE HAVE 10,000 THIS YEAR.

THIS IS OUR TURKEY BREAST.

THIS WHOLE PROJECT THAT U'RE ATTENDING HERE IS TO HELP FARMERS MARKET THEIR PRODUCTS.

>> EIGHT YEARS AGO PAUL STONE WOULD PROBABLY HAVE SPENT A SUMMER AFTERNOON GETTING IN A SECOND CUT OF HAY.

TODAY THE FORMER DAIRY FARMER IS SERVING UP TURKEY GALLANTINE TO A CROWD OF UPSCALE CONSUMERS.

>> THIS TELLS ABOUT OUR FARM.

THESE TURKEYS ARE GROWN IN VERMONT.

>> PAUL STONE IS A MAN MORE AT EASE ON A TRACTOR THAN IN FRONT OF A CROWD, BUT IF HE WANTED TO KEEP FARMING, SERVING UP A LITTLE TURKEY WAS A NECESSARY CHANGE.

>> I FARM BECAUSE I LIKE IT.

IT'S AN EMOTIONAL THING, AND THE PROBLEM WITH THAT IS WHEN FARMERS OR ANYBODY MAKES A DECISION ON AN EMOTIONAL LEVEL, IT MAY NOT MAKE ECONOMIC SENSE.

>> IN 1989 PAUL AND FRANCES STONE SOLD THEIR DAIRY HERD.

THEY WERE TIRED OF MAKING LESS AND LESS MONEY FOR THEIR MILK.

THEY WANTED TO TRY A NEW VENTURE, ONE THAT WOULD GIVE THEM MORE CONTROL OVER THE PRICE OF THEIR PRODUCT.

TURKEYS.

THOUSANDS OF THEM.

RAISED WITH CARE OUT ON THE OPEN RANGE WITH NO HORMONES OR ANTIBIOTICS.

A SPECIALTY PRODUCT THAT THE STONES CAN CHARGE MORE FOR THAN AVERAGE MASS-PRODUCED TURKEY.

WITH THIS NEW PRODUCT CAME THE NEED TO LEARN SOME NEW SKILLS.

>> THERE ARE LOTS OF OPPORTUNITIES IN ALL THE AREAS OF AGRICULTURE PRODUCTION AS FAR AS I'M CONCERN.

THE KEY TO IT IS BEING WILLING TO HAVE SOME KIND OF MARKETING ABILITY.

ONCE WE CHANGED TO TURKEYS, I FOUND THAT I'VE SPENT HALF MY TIME MARKETING AND THE OTHER HALF IN TRYING TO RUN THE FARM.

>> AT SOME POINT MARKETING IS ALL WE DO FOR EXTENDED PERIODS OF TIME.

WE GO TO FOOD SHOWS.

WE'RE ON THE ROAD GOING TO STORES.

WOULD YOU LIKE TO HANDLE OUR PRODUCTS, HERE'S WHAT WE HAVE, BEING TURNED DOWN, HAVING ENOUGH GUMPTION TO GO TO THE NEXT STORE EVEN THOUGH YOU'RE DISCOURAGED.

IT'S A NEW KIND OF EXPERIENCE.

MANY FARMERS ARE NOT INTERESTED IN IT.

>> TO THE STONES MARKETING MEANS MORE TN JUST GETTING THEIR PRODUCT FROM THE FARM TO THE CUSTOMER.

THEY FOUND IT'S BETTER ADVERTISING TO BRING THE CUSTOMER TO THE FARM.

>> WE DECIDED EARLY ON THAT WE WERE NOT ONLY GOING TO GROW VERMONT TURKEYS, BUT WE WERE GOING TO GROW STONEWOOD FARM VERMONT TURKEYS, AND I THINK WE ARE THE FIRST ONES IN THE STATE TH ACTUALLY HAVE OUR OWN LABEL.

OF COURSE, WE HAVE OUR NAME, AND ADDRESS AND OUR PHONE NUMBER, AND WE MAKE IT PLAIN THAT OUR NUMBER IS THERE FOR YOU TO CALL US.

AND I FOUND THAT PEOPLE REALLY LIKE IT WHEN I CAN TELL THEM PERSONAL THINGS ABOUT THE FARM, ABOUT THE TURKEYS.

THEY'LL CALL ME AND SAY, WELL I HAVE A DUMB QUESTION.

AND IT'S LIKE, THAT'S OKAY, YOU CAN HAVE A DUMB QUESTION.

JUST TELL ME WHAT IT IS.

>> THE STONES' VERSATILITY HAS PAID OFF.

IN 1994 THEY RAISED, PROCESSED AND SOLD OVER 12,000 BIRDS, SHIPPING WHOLE TURKEYS AND TURKEY PRODUCTS ALL OVER NEW YORK AND NEW ENGLAND.

THE NEW VENTURE DOES HAVE A DOWN SIDE.

THE STONES NOW PROCESS WHAT THEY RAISE.

IT COSTS $200,000 TO BUILD THIS NEW PLANT.

IT'S GOING TO TAKE A LOT OF TURKEY TO PAY IT OFF.

>> WAS TRANSFERRING FROM DAIRY TO TURKEYS WISE?

I'M NOT SURE I CAN ANSWER THAT QUESTION YET ON THE ECONOMICS PART OF IT, BUT HE OTHER PART OF IT, TO BE ABLE TO DO SOME MARKETING, YES, I'M VERY GLAD I MADE THE CHANGE.

THE KEY TO ME IS MARKETING.

ONE OF THE BIG ADVANTAGES WE HAVE IN VERMONT IS THE NAME, "VERMONT."

IT HAS HISTORICALLY MEANT A LOT TO PEOPLE IN TERMS OF QUALITY A TASTINESS, AND IT'S JUST A GREAT TOOL THAT MOST OTHER STATES DON'T HAVE.

I FEEL THAT WE HAVE THAT ADVANTAGE AND WE'RE NOT TAKING ENOUGH ADVANTAGE OF IT, PARTICULARLY IN MILK.

>> IF THE VERMONT NAME CAN SELL TURKEYS, CAN IT DO THE SAME FOR MILK?

NOT LONG AGO STEVE JUDGE WAS A TYPICAL VEONT DAIRY FARMER.

HE WORKED EFFIENTLY AND PRODUCED LOTS OF MILK, YET HIS JERSEY HERD GENERATED BARELY ENOUGH INCOME TO SUPPORT HIS FARMING OPERATIONS, LET ALONE HIS FAMILY OF SIX.

SOMETHING HAD TO CHANGE.

>> WE ALIZED VERY QUICKLY THAT WE NEEDED TO GET MORE MONEY FOR OUR MILK.

I WAS STUCK IN A SINGLE GUARANTEED MARKET AND BECAUSE THE GUARANTEED PRICE IS SO LOW, IT DOESN'T REALLY COVER OUR PRODUCTION COSTS.

>> AT A TIME WHEN MOST OF THE FARM COMMUNITY WAS BUSY LAMENTING THEIR ECONOMIC PLIGHT, JUDGE SET OUT TO FIND A BETTER WAY TO MARKET HIS PRODUCT.

>> SINCE WE ARE A FARM THAT FOCUSED ON QUALITY AND KEEPING OUR COWS CLEAN AND TREATING THEM HUMANELY WITH HEAVY FAMILY ORIENTATION, WE FELT THAT THERE WAS A MARKET FOR MILK LIKE THAT.

SO THE FIRST THING WE DID WAS TO IDENTIFY A GROUP OF FARMERS THAT WOULD COME TOGETHER AS A MARKETING ORGANIZATION.

>> I HEARD OF WHAT STEVE WAS TRYING TO DO AND I PURSUED IT.

>> ONE BY ONE JUDGE SIGNED ON NEARBY FARMERS WHO SHARED HIS VISION OF A SMALL LOCAL COOPERATIVE MARKETING THEIR OWN PREMIUM-PRICED MILK ON THE BASIS OF UNCONVENTIONALLY HIGH STANDARDS.

>> I FELT THAT THIS WAS PERHAPS THE WAVE OF THE FUTURE IF WE AND OTHER FARMERS WERE GOING TO SURVIVE IN THE AREA.

>> THE SUCCESS OF VERMONT MILK PRODUCERS WOULD DEPEND ON A SUBTLE BLENDING OF REALITY AND IMAGE.

JUDGE RECRUITED ONLY FARMS HE KNEW WOULD FIT HIS DEMANDING CRITERIA.

MEMBER FARMS HAD TO BE FAMILY OWNED AND OPERATED.

THE NEW COMPANY WOULD MARKET WHOLESOMENESS FOR ALL IT WAS WORTH.

>> CONSUMERS KNOW WHERE THE MILK COMES FROM.

THEY CAN EVEN CALL AND FIND OUT WHAT THE NAMES OF THE FARMER'S KIDS ARE.

WE THEN GO BEYOND THAT AND HAVE IDENTIFIED CONCERNS THAT CONSUMERS HAVE ABOUT THE DAIRY INDUSTRY; THAT THE COWS ON THE FARMS THAT PRODUCE THE MILK ARE WELL TREATED, ABOUT THE ENVIRONMENTAL IMPACT OF DAIRYING ON THEAND.

SO WE DESIGNED OUR PRODUCTION METHODS FROM START TO FINISH TO ADDRESS THE CONCERNS.

>> IT'S NOT SOMETHING MAGIC THAT WE ARE DOING.

WE'RE JUST TRYING TO MAKE GOOD QUALITY MILK IN A CLEAN ANIMAL ENVIRONMENTALLY FRIENDLY ATMOSPHERE.

IT'S NOT MAGICAL.

AND THE MAGICAL PART IS TRYING TO PRODUCE THE PRODUCT, AND THEN MARKET IT AND GET PAID MORE.

>> JUDGE'S PERSONALLY SIGNED GUARANTEE ON EVERY CARTON ANNOUNCES THE CENTERPIECE OF HIS VALUEDDED MARKETING CAMPAIGN.

"THE BEST TASTING LK CAN ME."

>> INTERESTINGLY ENOUGH SINCE, OH, PROBABLY THE 1960S THERE HAS BEEN NO EMPHASIS ON FLAVOR IN THE DAIRY INDUSTRY.

NONE.

FLAVOR IS A WHOLE NEW DIMENSION.

I DON'T KNOW IF YOU'VE EVER HAD A DREAM WHERE YOU WALK INTO A ROOM OFF YOUR HOUSE OR APARTMENT AND YOU ENTER A ROOM YOU'VE NEVER SEEN BEFORE.

WELL, TH WHAT AVOR WAS TO US.

WE HAD NEVER REALLY DEALT WITH IT.

>> FOLLOWING THE COMMON WISDOM THAT MILK FLAVOR IS CLOSELY RELATED TO TWO SPECIFIC LABORATORY MEASUREMTS, JUDGE ESTAISHED THE TOUGHEST TESTING STANDARDS IN VERMONT, EVEN HIRED HIS OWN LICENSED FIELD TECHNICIAN TO EXPEDITE THE PROCESS.

>> SOMATIC CELL COUNT FOR THE STATE IS 750,000.

OUR STANDAS REQUIRE THAT IT BE 300,000, ANDOST OF OUR FARMS CONSISTENTLY COMEN AROUND THE 100,000 RANGE.

IN MANY CASES THE AMOUNT OF BACTERIA IN OUR PRODUCERS' MILK IS TOO LOW TO COUNT THROUGH STANDARD TESTING PROCEDURES.

EARLY ON IN THE FORMULATIVE STAGES OF VERMONT MILK PRODUCERS IT WAS VERY CLEAR THAT WE COULD MAKE A HIGH-QLITY PRODUCT, WE COULD GET THE FARMERS TO PRODUCE IT.

GEING THAT PDUCT TO MARKET WAS GOING TO BE THE BIG QUESTION.

>> THE ANSWER CAME IN THE FORM OF PETER LOVIS, A SAVVY YOUNG BOSTON SALESMAN IN SEARCH OF A NEW MARKETING CHALLENGE.

>> NOT ONLY DO I THINK THIS IS A PRODUCT THAT COULD WORK, BUT I THOUGHT IT WAS ANMPORTANT PRODUCT THAT IT SHOULD WORK.

I MEAN, IT WAS VERY IMPORTANT THAT IT DID HAPPEN.

SO I GOT INTO THE MODE OF JUST WHATEVER IT TOOK, JUST MAKE THIS IDEA COME TO LIFE.

>> PETER CANVASSED RETAIL OUTLETS IN NEW YORK, BOSTON, PROVIDENCE, HARTFORD, FOUND OUT WHAT THE MIX OF THE SALES WERE, DID ALL OUR FOOTWORK TO DETERMINE WHAT MARKETING OPPORTUNITIES D WHAT NUMBERS WE MIGHT EXPECT.

WE'VE PROV THAT THE STRUCTURE WORKS, TO DELIVER THE PRODUCT TO THE MARKET, AND WE'VE PROVEN THAT PEOPLE WILL BUY THE MILK.

>> VERMONT MILK PRODUCERS CURRENTLY BUYS TWO TANKER LOADS OF ITS MEMBERS' MILK EACH WEEK FOR WHICH THE FARMERS ARE PAID A PREMIUM PRICE.

THE REST OF THE WEEK'S PRODUCTION IS SOLD THROUGH CONVENTIONAL MARKETING AT CONVENTIONAL PRICES.

>> THE REASON WE'RE ABLE TO DO THIS IS THAT ALL THE MILK FROM EACH INDIVIDUAL DAIRY FARMER IS NOT DEDICATED TO OUR PRODUCT.

WE ARE ESSENTIALLY PUTTING TOGETHER A TWO-TIER PRICING SYSTEM WHERE WE'VE GOT OUR BASE PRICE, WHICH IS THE REGULAR MARKET 6 DAYS A WEEK, AND THEN WE HAVE OUR ASS I PRICE, WHICH IS WHAT THE FARMERS GET WHEN THE MILKOES INTO OUR CARTONS.

IT'S JUST BASICALLY AN ATTEMPT TO T AS LARGE A SHARE OF THAT PRICE MARKUP TO THE FARMERS AS WE POSSIBLY CAN.

IT'S FAIRLY AMAZING THAT AN INCREASE OF 6 CENTS ON A HALF GALLON OF MILK IS THE EQUIVALENT OF A DOLLAR PER HUNDRED WEIGHT PAID TO THE FARMER.

REGULAR MILK SELLS FOR $1.45 ON THE SHELF, OURS SELLS FOR $1.99.

SO THERE'S A LOT OF 6 CENTS IN THERE.

WE'RE ONE OF THE FIRST ENTRIES INTO A WHOLE NEW CATEGORY OF UID MILK.

THE BIG QUESTION WAS WOULD CONSUMERS BUY IT, AND COUMERS ARE BUYING IT.

>> I THINK THE HILLS LOOK GOOD.

>> I THINK IT'S BEAUTIFUL.

I CAN'T WAIT TO FILL IT FULL OF MILK.

>> RIGHT NOW WHAT WE SHOULD BE DNG IS GOING OUT LOOKING FOR INVESTORS.

WE CAN'T DO THAT.

IF WE SOLD 51% OF VERMONT MILK PRODUCERS TO A GROUP OF VENTURE CAPITALISTS, THE FIRST THING THEY'D WANT TO DO IS MAKE VERMONT MILK PRODUCERS PROFITABLE, AND THE EASIEST WAY TO DO THAT IS TO PAY THE FARMERS LESS MONEY.

IF THE FARMERS ARE GOING TO CONTINUE TO PROFIT THROUGH THIS, THEY'VE GOT TO OWN THE COMPANY.

>> AT IS EARLY STAGE THE 20 FARMER OWNERS OF VERMONT MILK PRODERS MEASURE SUCCESS IN TERMS OF MERE EXISTENCE.

>>HE RAMIFICATIONS OF WHAT WE'RE DOING IS MUCH GREATER THAN THE IMPACT OF THECTUAL PRODUCT ITSELF.

WE ARE COMETELY SWIMMING UPSTREAM IN TERMS OF THE GENERAL WISDOM OF THE DAIRY INDUSTRY.

RIGHT NOW THE RULES OF THE GAME FOR DAIRY FARMERS ARE TO PRODUCE LOTS AND LOTS OF CHEAP MILK.

IF WE CAN RE-INTRODUCE NEW RULES TO THE GAME HERE IN THE NORTHEAST ABOUT PRODUCING MILK AND MARKETING DAIRY PRODUCTS, WE MAY BE ABLE TO CREATE A FUTURE FOR VERMONT DAIRY FARMERS -- FOR A FEW VERMONT DAIRY FARMERS ANYWAYS.

>> DESPITE ITS IMPORTANCE TO OUR REGIONAL ECONOMY, AGRICULTURE IS REWARDING FEWER AND FEWER FARMERS WITH FEWER DOLLARS.

YET THE VERMONT IMAGE, WITH ITS MESSAGE OF INTEGRITY AND QUALITY, STILL OFFERS OPPORTUNITY TO FARMERS SAVVY ENOUGH TO BRING SUPERIOR VERMONT PRODUCTS TO MARKET.