Milk Marketing Orders: Issues for Consideration in Reauthorizing the Farm
Bill in 1995 (Testimony, 05/23/95, GAO/T-RCED-95-203).

The market conditions that led to the creation of the federal
dairy-pricing system have changed, and the premises for milk pricing
under federal orders are outdated.  As a result, milk-marketing orders
have led to excess production and inequitable treatment of some
producers.  This situation exists because the orders guarantee producers
in some areas of the country higher prices than producers in other
areas, even though production costs might be the same or less.  Two
pricing components of federal milk-marketing orders contribute to these
conditions: (1) an incentive to boost production of higher-quality milk
for drinking purposes (grade A) and (2) an incentive to make it
profitable for traditional surplus milk production areas to ship milk to
traditional areas of insufficient production.  Options exist to address
these matters.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-95-203
     TITLE:  Milk Marketing Orders: Issues for Consideration in 
             Reauthorizing the Farm Bill in 1995
      DATE:  05/23/95
   SUBJECT:  Dairy industry
             Dairy products
             Price regulation
             Price supports
             Agricultural programs
             Unfair competition
             Farm income stabilization programs
             Economic analysis
             Commodity marketing
             Agricultural production
IDENTIFIER:  USDA Milk Marketing Order Program
             USDA Dairy Price-Support Program
             
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