Northeast Interstate Dairy Compact

New England USA

Northeast Interstate Dairy Compact

The Northeast Interstate Dairy Compact was an agreement among six New England states in the United States to regulate the price of milk. The compact was established to ensure that dairy farmers received a fair price for their milk, which in turn aimed to stabilize the dairy industry in the region.

History[edit | edit source]

The compact was authorized by the United States Congress in 1996 and became operational in 1997. The member states included Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. The compact was designed to address the volatility in milk prices and to provide a more predictable income for dairy farmers.

Structure and Function[edit | edit source]

The compact established a commission, known as the Northeast Dairy Compact Commission, which was responsible for setting the minimum price that processors had to pay for milk. This price was set above the federal minimum price established by the Federal Milk Marketing Orders. The commission was composed of representatives from each member state, including dairy farmers, processors, and consumers.

Impact[edit | edit source]

The compact had a significant impact on the dairy industry in New England. It provided financial stability for dairy farmers, which helped to preserve the rural landscape and maintain the local agricultural economy. However, it also faced criticism from some quarters, particularly from processors and consumer groups who argued that it led to higher milk prices for consumers.

Dissolution[edit | edit source]

The Northeast Interstate Dairy Compact was dissolved in 2001 after Congress did not renew its authorization. The expiration of the compact led to renewed volatility in milk prices and financial challenges for dairy farmers in the region.