Other Federal Programs
Other Federal Dairy-Farm Income Enhancement Programs
In addition to the Federal Milk Market Orders program, the federal dairy-farm safety net is composed of a broad array of programs, some of which have origins dating back as far as 1933. They include:
Dairy Product Price Support Program (DPPSP)
Through this program, USDA purchases of cheese, butter and milk powder remove those products from the marketplace, driving up their prices along with the price paid for farmers’ milk.
Milk Income Loss Contract (MILC)
The federal government writes dairy farmers a check when the price they receive for their milk falls below a predetermined level. The lower the milk price, the higher the check from taxpayers.
Dairy Export Incentive Program (DEIP)
USDA subsidizes exports of cheese, butter and milk powder when U.S. prices for those commodities are too high to allow them to compete in world markets. The subsidies make it profitable for U.S. exporters to sell to importers at prices below the U.S. level and help dispose of dairy commodities purchased under the MPSP.
