The Southern Dairy Compact was an agreement between thirteen states in the southern

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

. It was proposed to ensure the continued marketability of dairy producers in the member states and to supply a stable, local supply of milk products to the region. The proposed agreement was modeled on the Northeast Interstate Dairy Compact, that would allow member states to jointly establish a minimum farm price for fluid milk that is above the federally mandated minimum price level in the region. Many southern state legislatures approved membership in the compact, however the required congressional authority to form a compact was never granted. In the

2002 Farm Bill The Farm Security and Rural Investment Act of 2002, also known as the 2002 Farm Bill, includes ten titles, addressing a great variety of issues related to agriculture, ecology, energy, trade, and nutrition. This act has been superseded by the 2 ...

, a support program, Milk Income Loss Contract Payments, for participating dairy farmers nationwide was enacted, allowing for subsidies when the price falls below 16.94 per cwt.

References

*{{CRS, article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf, author= Jasper Womach United States interstate compacts Dairy farming in the United States