§7256 Northeast Interstate Dairy Compact

Summary

Congress allows Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont to run the Northeast Interstate Dairy Compact, but only if the Secretary finds a strong public need. If the Secretary makes that finding, the states that had approved the Compact by April 4, 1996 may put it into effect. The Compact cannot control prices for Class II, Class III, or Class III–A milk used to make products; it only applies to Class I (fluid) milk as defined by federal milk orders. Congress’s permission ends on September 30, 2001. Only Delaware, New Jersey, New York, Pennsylvania, Maryland, and Virginia may join later, and only if they touch a participating state and Congress agrees after April 4, 1996. If Compact price rules cause the Commodity Credit Corporation to buy extra milk or milk products, the Compact must pay the Corporation back before the fiscal year ends, based on how much regional production is projected to grow above the national average as set by the Secretary. The federal milk order administrator must give technical help if asked and be paid for it. The Compact cannot block milk or milk products from other U.S. production areas from being sold inside the Compact region and must follow federal rules for sharing sales proceeds; certain compensatory payments may not be used to keep milk out, and simply setting an over-order price is not itself a blocking payment.