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The compact created a Northeast Dairy Compact Commission, based in Montpelier, Vermont, charged with setting prices and regulating bulk milk handlers. From 1997 until its expiration on September 30, 2001, the Northeast compact required processors in the region to pay dairy farmers at least $16.94/cwt. for farm milk used for fluid consumption.
As of December 2021, the state had 568 dairy farms milking cattle, sheep, and/or goats which produced 2.5 billion pounds of milk annually. [1] Vermont ranks 15th in the United States for raw milk production. [2] Dairy farming in Vermont, like in much of the US, is increasingly scaling upwards due to market and governmental pressures.
These purchase prices are set high enough to enable dairy processors to pay farmers at least the support price for the milk they use in manufacturing these products. The 2002 farm bill (P.L. 107-171, Sec. 1501) mandated a support price of $9.90/ cwt , effective through December 31, 2007, when the program by law was scheduled to expire.
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