Dairy Industry: Estimated Economic Impacts of Dairy Compacts

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A letter report issued by the General Accounting Office with an abstract that begins "U.S. dairy farmers produced 167.7 billion pounds of unprocessed, raw milk in 2000. Federal and state dairy programs influence the minimum prices paid to farmers for raw milk. These prices are based on how the raw milk is to be used. Minimum prices set for raw milk to be used for making drinking milk (fluid milk) are higher than those for milk used for manufacturing cheese, butter, and other dairy products. About 70 percent of the raw milk produced in the United States is regulated under ... continued below

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United States. General Accounting Office. September 14, 2001.

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Description

A letter report issued by the General Accounting Office with an abstract that begins "U.S. dairy farmers produced 167.7 billion pounds of unprocessed, raw milk in 2000. Federal and state dairy programs influence the minimum prices paid to farmers for raw milk. These prices are based on how the raw milk is to be used. Minimum prices set for raw milk to be used for making drinking milk (fluid milk) are higher than those for milk used for manufacturing cheese, butter, and other dairy products. About 70 percent of the raw milk produced in the United States is regulated under the U.S. Department of Agriculture's (USDA) federal milk marketing order program. The 1996 farm bill established another pricing program -- the Northeast Interstate Dairy Compact (NEDC) -- which is run by a commission that sets a minimum price for raw milk sold as fluid milk in six New England states. The NEDC works in conjunction with federal and state dairy programs to establish an alternative minimum price for raw milk in the Compact states. When the monthly NEDC minimum price exceeds the federal marketing order or state minimum price, the NEDC price becomes the minimum price. Congress is now considering legislation that would reauthorize and expand the NEDC and establish additional interstate dairy compacts. This report reviews the potential economic impacts of different compact alternatives."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • September 14, 2001

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  • June 11, 2014, 5:03 a.m.

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United States. General Accounting Office. Dairy Industry: Estimated Economic Impacts of Dairy Compacts, report, September 14, 2001; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc291148/: accessed April 24, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.