Also reflecting the dual, national and local character of the dairy marketplace, the New Deal legislation was further interpreted by the courts as allowing for additional and complimentary, individual state price regulation.[1] Rather than preempting entirely state price regulation of local markets, the New Deal legislation was interpreted as leaving the states free to regulate prices above, or "over-order" the federally-established minimum raw floor and uniform pay prices. This judicial determination meant the states could make local intrastate pricing adjustments as necessary when the national program did not fully serve the variable local public interest of the individual states.
Combined, the New Deal legislation and its judicial interpretation thus provided a two-part statutory design of federalist dairy policy. The two-part policy contained one component of overall coordinating, national policy, and a second, intrastate component allowing for local adjustment to reflect local conditions.
[1]See Milk Indus. Foundation v. Glickman, 132 F.3d 1467, 1471 (D.C. Cir. 1998) (citing United Dairy Farmers Coop. Ass’n v. Milk Control Comm’n, 335 F. Supp. 1008, 1013–15 (M.D. Pa.) (three-judge court), aff’d summ., 404 U.S. 930 (1971).