EVALUATING THE ECONOMIC IMPACTS OF REGIONAL MILK PRICING AUTHORITIES: THE CASE OF DAIRY COMPACTS

Congress consented to the creation of the Northeast Interstate Dairy Compact in the 1996 Federal Agriculture Improvement and Reform Act. Interest is now growing in expanding this compact and creating new multi-regional dairy compacts. Dairy compacts provide a floor for Class I fluid prices and thus stabilize and enhance farm milk prices in compact regions. This analysis indicates that multi-regional dairy compacts will result in clear economic tradeoffs between dairy farmers, processors, retailers, and consumers. While dairy farmers within the compact region may economically benefit from higher farm milk prices, processors, retailers and consumers in the compact region and dairy farmers outside the compact region will face economic losses.


Issue Date:
2000-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31307
Published in:
Agricultural and Resource Economics Review, Volume 29, Number 2
Page range:
208-219
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-24

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)