More Milk Means Compact's Reimbursements

September 3

Increased milk production in the Northeast means the Northeast Dairy Compact must reimburse USDA almost $1.4 billion for nonfat dry milk purchases that resulted from the increase. The compact must reimburse for product purchases that result from increases that exceed the projected national rate of increase.

Fiscal year 1999 milk production in the six compact states -- Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont -- is expected to total 4.8 billion pounds, 3.6% more than the fiscal year 1997-98 baseline. National fiscal 1999 milk production is expected tot total 161.3 billion pounds, 3.2% more than the baseline.