Dairy Price Support Program
Encyclopedia
The Dairy Price Support Program is the United States federal program that maintains a minimum farm price for milk used in the manufacture of dairy products. USDA indirectly assures a minimum price for milk by purchasing any cheddar cheese, nonfat dry milk, and butter offered to it by dairy processors at stated prices. 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 is scheduled to expire.
Also, the farm bill established a Milk Income Loss Contract (MILC) program that makes direct payments to participating dairy farmers whenever the minimum monthly market price for farm milk used for fluid consumption in Boston falls below $16.94 per hundredweight (cwt.). The MILC program has been reauthorized until September 30, 2012.
Hundredweight
The hundredweight or centum weight is a unit of mass defined in terms of the pound . The definition used in Britain differs from that used in North America. The two are distinguished by the terms long hundredweight and short hundredweight:* The long hundredweight is defined as 112 lb, which...
, effective through December 31, 2007, when the program by law is scheduled to expire.
Also, the farm bill established a Milk Income Loss Contract (MILC) program that makes direct payments to participating dairy farmers whenever the minimum monthly market price for farm milk used for fluid consumption in Boston falls below $16.94 per hundredweight (cwt.). The MILC program has been reauthorized until September 30, 2012.