A. Issue: The Balance Between Production and Consumption in the
Region--The Pay Price Needed To Yield a Reasonable Rate of Return to
Producers and to Ensure an Adequate Supply of Milk for the Region

    This issue is the premise for the remaining discussion of the
public interest in regulated milk pricing.\71\ The remaining discussion
is triggered by the Compact Commission's determination that such farm
price regulation is necessary, both to yield a reasonable rate of
return to producers and to ensure an adequate, local, supply of milk
for the region.
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    \71\ As noted previously, this issue is raised specifically by
Compact Section (e).
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    This issue was previously addressed in detail in the previous
finding section. In summary, the Compact Commission concluded that
farmer pay prices must be enhanced, stabilized and adjusted for
inflation. The Commission thereby determined that a flat, combined,
federal Class I and Compact Over-Order Price Regulation in the amount
of $16.94 (Zone 1) per cwt was necessary to accomplish these
objectives.