COMPACT COMMISSION RELEASES $3,948,421.71 FOR OCTOBER 2000; $52,134,108.00

IN TOTAL PAYMENTS MADE SINCE JANUARY, 2000

 

FOR IMMEDIATE RELEASE: November 20, 2000

Contact: Dan Smith, Executive Director, at (802) 229-1941

 

MONTPELIER, VT --  The Northeast Dairy Compact Commission has released a total of $3,948,421.71 to the approximately 4000 dairy farmers in the New England milkshed, for October 2000 milk shipments.  Farmers will receive $0.74 per hundred pounds of milk shipped into the New England market for this payment.

 

Tracking operation of the federal Milk Market Order Program, the Compact Commission regulates the price paid by milk processors for all fluid or beverage milk marketed in the six-state New England marketplace.  The charged amount to processors under the Compact price regulation is calculated as the difference between $16.94 per hundred pounds and the monthly price established for Class I or fluid milk under the federal program.  For October, 2000, the Compact price regulation resulted in an "Over-order" charge of $1.80 per hundred pounds.  By contrast, the Over-order charge for September was $1.85, indicating that the Class I price under the federal program dropped five cents from September to October.

 

The October payment also includes the fourth of twelve installment payments for the Supply Management Assessment Refund Program, bringing the total held in this reserve to about $1,600,000.00.  As occurs each month, amounts were also placed in reserve for reimbursement to the Women, Infants and Children Supplemental Nutrition Programs and the School Food Programs.

 

Since January, 2000 the Compact Commission has released $52,134,108.00 to producers who shipped milk as part of the New England milkshed.  The average Compact Over-order charge has been $2.20 per hundredweight on average, and the Over-order Producer Payment has been $0.94 per hundredweight on average.

 

To cover this reimbursement provision of the price regulation, the Commission had withheld one percent of the total receipts from milk handlers under the price regulation for the period covered by school year 1999-2000 in the total amount of $795,653.25.  Because less than one percent was paid out as reimbursement to school districts, the balance will be added to the October pool for distribution to producers.

 

 

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