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Northeast Interstate Dairy Compact
Impact Report

Submitted by the 
Northeast Dairy Compact
Commission 
August 15, 20
01

Daniel Smith, Esq.
Executive Director

 

Table of Contents

Preface
Introduction - New England Governors' Council
Summary Findings
Summary Conclusions
List of Attachments for Part I

Part I. Operation and Impact of the Compact Over-Order Price Regulation

1.Price Regulation - Summary Facts and Figures
A. Overview
B. Over-order Obligation and Producer Payments
C. WIC Exemption, School Lunch Reimbursement and Supply Management             Reserve
D. Administrative Assessment
E. Producer Payment Per Farm
F. Obligation/Procurement Cost Per Gallon

2.New England and New York Pooled Farm Data
A. Overview and Herd Size
B. Herd Size and Production
C. Farm Attrition Data
D. Production: Regional Production; pool volume; per cow production and cow numbers

3.Data on Farm Viability
A. Overview
B. “Typical Farm” Impact, 1997 - 2000
C.Impact on “Credit Worthy” Farms
D.Impact on Farm Stress/Farm Viability
E. Farm Attrition Analysis

4.Consumer Impact Report
A. Overview
B. Procurement Cost/Retail Price Relationship
C. Projected Per Capita and Household Impact
D. Selected County and State Impacts
E. Future Analysis
 

Part II.Legal History of the Compact

1.Introduction

2.Interstate Negotiation and Formal Legislative Action
A. Milk Market Regulation and the Evolution of the Regional Market
B. The New Deal Federalist Design of Milk Market Regulation
The New Deal and the Courts
C. State Regulation Under the New Deal
D. Changes in the Marketplace
E. Impetus for Change and Establishment of the Northeast Dairy Compact
F. Final Resort to Individual State Action
G. Inception of the Compact
H. Draft Copy
I. The Process of Interstate Legislative Action

3.Federal Authorization

A. Overview and the 1994 Hearings
B. Congressional Consent
C. The Secretary's Finding and the Milk Industry Foundation Case
 

4.Organization and Implementation of Price Regulations
A. Overview - Organization
B. The First Rulemaking Proceeding
Subjects and Issues Rulemaking
Proposed Rule
C. The First and Second Rules
D. Subsequent Developments
School Lunch Reimbursement
Diversions and Transfers
Section 9(f) Price Incentive and Surplus Production
 

5.Handler Petitions for Exemption and Associated Litigation
A. Overview - Petitions for Exemption
B. The New York State Dairy Foods Case
C. The Organic Cow and Horizon Cases

6.Conclusion
 

Part III. Summary of the Regular Monthly Meetings of the Northeast Dairy Compact Commission, April 2001 through August 2001, Held in Compact States
note: many attachments in part iii require adobe acrobat.


1.Overview
2.Meeting in Vermont
3.Meeting in Rhode Island
4.Meeting in Massachusetts
5.Meeting in Maine
6.Meeting in Connecticut

Appendix

1.List of Attachments for Part I
2.List of Attachments for Part III


The Northeast Dairy Compact Commission
64 Main Street, Room 21
Montpelier, VT 05602
phone: (802) 229-1941 fax: (802) 229-2028