U.S. to Cut Milk Price Support 50 Cents
The government’s milk price support will be reduced by 50 cents per 100 pounds on July 1 because of another rise in surplus dairy products, Agriculture Secretary John R. Block announced Wednesday.
It was no surprise. After declining in 1984 for the first time in six years, U.S. milk production has been climbing again, forcing the Agriculture Department to buy surplus butter, cheese and non-fat dry milk to prop up the price of milk paid to farmers by dealers.
Block said the July 1 support will be reduced to $11.60 per 100 pounds and will continue at that level until Sept. 30, when the current law expires. If Congress does not pass new legislation by then, a so-called permanent law will go into effect.