Flooring the Support Price for Milk
Published : Mar 2003
Authors : Ed Jesse
The Dairy Price Support Program has operated continuously since 1949 to maintain a minimum price for milk used for manufacturing purposes. The specific floor price (or, at times, the mechanism to calculate the floor price) is determined by Congress, usually as part of omnibus agricultural legislation (farm bills). The current support price is $9.90 per hundredweight for milk of “average” butterfat content, which converts to $9.80 for milk testing 3.5 percent butterfat, the standard used in federal order pricing. This price level is specified by the Farm Security and Rural Investment Act of 2002 and is effective through December 31, 2007 unless altered by Congress before then. The support price has been $9.90 since January 1, 1999.

