|PDF Title :
|West’s Encyclopedia of American Law
|Book Vol :
|Total Page :
|Jeffrey Lehman, Shirelle Phelps
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|PDF Link :
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West’s Encyclopedia of American Law
In addition, the 1996 law authorized a dairy “compact” for six New England states. This provision sets a minimum farm price for milk consumed in the six New England states.
When federally regulated milk prices drop below the compact price, processors are required to pay farmers the difference. Midwest dairy farmers have argued this is unfair because the compact erects a trade barrier and encourages New England farmers to overproduce milk.