§7256 Northeast Interstate Dairy Compact

Summary

Congress agrees to the Northeast Interstate Dairy Compact for Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, but only under specific rules. If the Secretary finds a strong public interest, the Secretary may allow the states that had ratified the Compact by April 4, 1996 to put it into effect. The Compact Commission may only regulate Class I (fluid) milk and must not control Class II, Class III, or Class III–A milk used for manufacturing or any other non‑Class I milk under federal orders. Congress’s consent ends on September 30, 2001. After April 4, 1996, only Delaware, New Jersey, New York, Pennsylvania, Maryland, and Virginia may join, and a joining state must border a participating state and have Congress’s approval. Each year a Compact price rule is in place, the Compact Commission must repay the Commodity Credit Corporation for any purchases caused by the Compact region’s milk growing faster than the national projected rate, as the Secretary determines. If asked, the federal milk‑order Administrator must give technical help to the Commission and be paid. The Commission cannot block or limit milk or milk products made outside the region, must follow federal rules for sharing proceeds from outside milk, and may not use compensatory payments to keep milk out; simply setting a higher Compact price is not by itself a compensatory payment or a marketing ban.