Contact: David Ferch at (802) 229-1941, or dferch@dairycompact.org
MONTPELIER, VT -- The Northeast Dairy Compact today released $5. 3 million to dairy farmers across the northeast. This money represents 6.7 percent of dairy farm income.
The Northeast Dairy Compact was approved by Congress in 1996 to make sure farmers are not paid less than $1.46 for every gallon of milk bottled for use as a beverage. The Compact works by making up the difference between $1.46 and the federally established price for milk, which changes each month. In May, the period to which this payment applies, the federally established price for beverage milk was $1.27 per gallon.
The amount of money is derived by multiplying the difference between $1.46 and $1.27 times the total number of gallons of milk sold as a beverage throughout New England, or 29,307,170 gallons.
Although this money represents a small portion of farm income, it comes at a crucial time. The federally established price for milk has been at a historically low level since December. During this same period of time poor weather has jeopardized the farmers’ ability to grow feed. To make matters worse, high fuel costs has put a heavy drain of farm expenses.
Since the Compact was first implemented, dairy farmers who have supplied the New England market have received $110,959,620 and consumers have drunk roughly 999,568,268 gallons of milk.
For those who are interested in the Compact’s supply management program, money will not be escrowed until August, when the Compact releases funds for milk sold in July.
If you have any further questions, call David Ferch at (802) 229-1941.