Word: dairymen
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...extent of the dairymen's political finagling is not yet fully known by federal probers, but it clearly included huge campaign contributions to many candidates for national and state offices. What the milk producers were after, of course, was higher prices for their products. At a meeting in Washington on Aug. 4, 1970, former AMPI Attorney Jake Jacobsen advised officers of the cooperative that "one way a small group makes itself heard is to help the politicians get into office. It works the same way from the President on down...
Wise Advice. Many milk producers thought they detected the wisdom of Jacobsen's advice when the Nixon Administration in 1971 raised federal milk-price supports by 270, to $4.93 per 100 Ibs. The increase came about three months after the President was offered $2 million by the dairymen for his 1972 campaign. The rise added more than $300 million to the annual income of U.S. dairy farmers and at least as much to the prices paid by consumers. Nixon has denied that the decision to raise supports was in any way influenced by the milk producers' contributions...
...very next day the dairymen finally had an audience with the man who was, among other things, the nation's most notorious cottage cheese customer. Nixon and other Administration officials met with a dozen leaders of the three co-ops to discuss price supports. Later, the President held a follow-up meeting with Hardin, Connally and George Shultz, then director of the Office of Management and Budget, to discuss the milkmen's arguments. That evening, according to Ervin committee testimony, Connally met yet again with the co-op executives at a private home in Washington to go over...
Connally has testified that he cannot recall that meeting. He did have one private discussion about price supports with Jacobsen, but at no time put things on the basis of paid-for favors. He said that in talks with the President he favored the dairymen's position but only on economic grounds...
Meanwhile, as Nixon pointed out, the dairymen were certainly not putting all their milk in one can. Almost immediately after Hardin began opposing a price-support increase, legislation was introduced in both houses of Congress aimed at raising the level substantially. Most called for an increase that would have pegged milk prices to at least 85% of parity, the idealized measure that has traditionally denoted "full prosperity" for U.S. farmers. The Congressional push, as the President noted, was led by Democrats, many of whom had received contributions from milk producers during their own recent campaigns...