For Immediate Release: Feb. 16, 2000




MONTPELIER, VT – The Northeast Dairy Compact Commission today released $6.9 million to dairy farmers in New England and other states who provided drinking milk for the New England market in January.


This money, an extra $1.21 for every hundred pounds of milk (cwt) produced, should be welcome at a time when the farm price for milk continues to fall with no rebound anticipated for the near future. The majority of the money farmers receive for the milk they produce is determined by the Federal Milk Market Administrator. The January Compact payment represents approximately 8 percent of the farmer’s paycheck.


A year ago the price for Class 1 milk (milk destined for use as a beverage and the only milk whose price the Compact can regulate) was $20.08/cwt. Last month the Class 1 price was $14.15/cwt, a 30 percent decline. To make matters worse, fuel prices in the Northeast have skyrocketed, putting extra financial pressure on farmers who use fuel to drive tractors, run generators and transport milk to market.


Dairy farmers within New England do not make enough milk to meet the demands of the New England market, consequently, as much as 25 to 30 percent of the milk in New England is shipped in from other states. The farmers in those other states who provided milk to New England will receive Compact payments. New York farmers represent the largest non-New England block of producers but farmers as far away as New Jersey, Pennsylvania, Georgia, Virginia and Michigan will also receive some Compact payments.


Since the first Compact pool in July 1997, the Compact has returned to farmers $90.2 million. Connecticut farmers have received $6.7 million. Maine farmers have received $7.8 million. Massachusetts farmers have received $5.32 million. New Hampshire farmers have received $4.4 million. New York farmers have received $27.6 million. Rhode Island farmers have received $360,800. And Vermont farmers have received $37.8 million.


If you have any questions about this press release or any other issue relating to the Northeast Dairy Compact, please call David Ferch at (802) 229-1941.

Return to Press Releases
Return to the Northeast Dairy Compact Home Page