Overview of the Dairy Surplus Issue--Policy Options for Congressional Consideration
RCED-85-132
Published: Sep 18, 1985. Publicly Released: Sep 18, 1985.
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Highlights
To assist Congress in its consideration of various legislative proposals to revise dairy policies, GAO summarized its work on dairy-related issues over the last 6 years, discussed the magnitude and nature of the dairy surplus problem, and analyzed several policy options for dealing with the problem.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| To avoid reverting to a parity formula required by the Agricultural Act of 1949, which would result in increasing the current support price from $11.60 to $16.22 a hundredweight, legislation will be needed to revise or replace the present dairy price-support program. In deliberating on such legislation, Congress may wish to give consideration to either the supply-demand adjuster or moving-average price option. | The Food Security Act of 1985 includes a supply-demand adjuster mechanism and a new milk diversion program. |
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Agricultural programsDairy productsFarm income stabilization programsPrice regulationPrice supportsProgram evaluationProposed legislationInventoriesDairy industryAgricultural commodities