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Effects and Administration of the 1984 Milk Diversion Program

RCED-85-126 Published: Jul 29, 1985. Publicly Released: Jul 29, 1985.
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Highlights

GAO reviewed the Department of Agriculture's (USDA) temporary milk diversion program to: (1) determine how milk producers decided whether to participate; (2) estimate the program's effect on milk production and government dairy purchases; and (3) evaluate USDA effectiveness in administration of the program.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If it reestablishes the program, Congress should select a base period to avoid paying participants for marketing reductions made prior to the program.
Closed – Implemented
Congress established a similar program, the Dairy Termination Program, and set the base period as calendar year 1985, the period immediately preceding the program sign-up period.

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Topics

Agricultural industryAgricultural programsCattleCommodity marketingDairy productsFarm income stabilization programsMicroeconomic analysisPrice supportsBeefLivestock