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BURLINGTON, Vt.—Vermont's congressional delegation is backing new legislation that it says would create a safety net for dairy farmer. But dairy processors say it amounts to another attempt to forge a national dairy compact.

The National Dairy Equity Act would protect dairy prices in Vermont and across the country after the current Milk Income Loss Contract program expires in September 2005. It would be funded largely by processors. The Dairy Equity Act would establish regional boards with the authority to require processors to pay a higher price for Class I milk, or milk to be consumed as fluid milk. Under the legislation, five regional dairy marketing areas would be established. States within the various regions would have the option of participating. Unlike the former Northeast Interstate Dairy Compact, the Dairy Equity Act is designed to work in every region of the country, say the bill's authors.