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Milk Marketing Orders: Options for Change

RCED-88-9 Published: Mar 21, 1988. Publicly Released: Mar 21, 1988.
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Highlights

GAO reviewed several aspects of federal milk-pricing policies to determine how: (1) the milk marketing order program affects the U.S. dairy surplus problem; (2) to change the program to reduce incentives for milk production; and (3) such changes would affect the surplus and the program's ability to meet dairy policy goals.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress may wish to consider establishing the goal of decreasing the federal role in milk pricing; working with the Department of Agriculture (USDA) to develop and adopt legislation necessary to accomplish that goal; and directing the Secretary of Agriculture to: (1) monitor the conditions in the industry that result from changes to pricing policies; and (2) act, if necessary, to help the industry adjust.
Closed – Implemented
USDA has issued proposed rule changes to certain pricing aspects of the marketing orders. Other pricing policy changes are still under evaluation by USDA.

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Topics

Agricultural policiesAgricultural productionAgricultural programsCommodity marketingDairy industryDairy productsFarm income stabilization programsPrice regulationPrice supportsProgram evaluation