Northeast Dairy Compact
Encyclopedia
The Northeast [Interstate] Dairy Compact was an interstate compact
Interstate compact
An interstate compact is an agreement between two or more states of the United States of America. Article I, Section 10 of the United States Constitution provides that "no state shall enter into an agreement or compact with another state" without the consent of Congress...

 created by the New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...

 states and approved by Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

, most recently in , § 147 (1996), the purpose of which was to regulate the wholesale price of fluid milk
Milk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...

 in the member states and take other actions to preserve the economic viability of dairy farming
Dairy farming
Dairy farming is a class of agricultural, or an animal husbandry, enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale.Most dairy farms...

 in the region.

The compact created a Northeast Dairy Compact Commission, based in Montpelier, Vermont
Montpelier, Vermont
Montpelier is a city in the U.S. state of Vermont that serves as the state capital and the shire town of Washington County. As the capital of Vermont, Montpelier is the site of the Vermont State House, seat of the legislative branch of Vermont government. The population was 7,855 at the 2010...

, charged with setting prices and regulating bulk milk handlers. After controversy and claims of price inflation, in 1999 Congress limited the duration of its authorization of the compact, which ceased operation on September 30, 2001 after intense lobbying both in favor and against its extension. Federal price regulation in the dairy industry continues.

The compact was "killed" by Senator John Kerry as he was running for president in 2004 to pander to the Iowa voters.
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