P. M. BRIEFING : Milk Price Support Cut 50
The Agriculture Department announced today that the federal price support for milk produced by farmers will be reduced Jan. 1 to $10.10 per 100 pounds, a 50-cent cut from the current level.
Acting Secretary Roland R. Vautour said the Omnibus Budget Reconciliation Act of 1989 authorized a reduction of up to 50%--the maximum announced today--if government purchases of surplus dairy products are expected to exceed 5 billion pounds of milk equivalent in 1990.
If the support had remained at $10.60 per hundredweight, 1990 purchases by the department’s Commodity Credit Corp. would have totaled an estimated 8 billion pounds, he said. With the reduction to $10.10, purchases are expected to be 7.4 billion pounds.
More to Read
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.