A
report prepared independently by Allbee and Associates estimating the potential
loss of farms without the presence of the price regulation yielded a parallel
finding. According to this
estimate, the price regulation may well have reduced the number of farm losses
by as much as two and one half times. The report estimates that over a two-year
period, 225 farms could be expected to go out of business due to normal
attrition, even with the compact in place.
Were the Compact not in place it is estimated that an additional 383 more
farms--or a total of 608--would be expected to go out of business without the
compact being in place. (Attachment
3p).
The analyses presented in Attachments 3o and 3p probably understate the case according to the data presented in the individual assessments of the price regulation’s impact on farm loss provided by each of the New England State Commissioners of Agriculture. These assessments were prepared in response to a request made by Senator Snowe and Senator Collins of Maine. Commissioner Steve Taylor of New Hampshire indicated that:
“Since the Compact’s inception in July 1997 the number of farms producing milk for the commercial market in this state has declined from 187 to 176…If there had been no Compact I would expect that by now we would be down to 130 or even fewer farms.”