§7256 Northeast Interstate Dairy Compact

Summary

Congress agrees to let Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont form the Northeast Interstate Dairy Compact, but only if several rules are met. The Secretary must first find a strong public interest in the region and then may give the states that had ratified the Compact by April 4, 1996, the power to carry it out. The Compact Commission may only set rules for Class I (fluid) milk and may not control Class II, Class III, Class III–A, or other manufacturing milk. Congressional consent for the Compact ends on September 30, 2001. Only Delaware, New Jersey, New York, Pennsylvania, Maryland, and Virginia can join later, and then only if the joining state touches a participating state and Congress agrees after April 4, 1996. Each year a Compact price rule is in effect, the Compact Commission must pay back the Commodity Credit Corporation for any milk purchases caused by the region’s production growing faster than the national projected rate. At the Commission’s request, the Federal milk marketing order administrator must give technical help and be paid for it. The Commission cannot block or limit milk or milk products coming from other U.S. production areas, must follow federal rules about sharing sales proceeds for milk from outside the region, and may not use compensatory payments to keep out outside milk; simply setting an over-order price is not a compensatory payment or a marketing ban. Key terms: Class I (fluid) milk — fluid milk, as defined by a federal milk marketing order.