Southern Dairy Compact: A Key Agreement for Southern Dairy Farmers

Q: Can states opt out of the Southern Dairy Compact?

Yes, participation is voluntary, and states can choose whether or not to join.

Q: How does the compact affect milk prices?

It allows member states to set a minimum price for fluid milk, helping to stabilize the market.

Definition & Meaning

The Southern Dairy Compact is an agreement among Southern U.S. states aimed at stabilizing the dairy industry. This compact allows member states to collaboratively set a minimum price for fluid milk, ensuring that dairy farming remains viable in the Southern region. It also assures consumers of a reliable, local supply of high-quality milk. By acting together, these states enhance their authority to regulate interstate commerce, which they could not achieve individually.

Table of content

Legal Use & context

The Southern Dairy Compact is primarily relevant in agricultural law and interstate commerce. It is utilized by states to maintain fair pricing and supply standards in the dairy market. Legal practitioners may encounter this term when dealing with agricultural regulations, interstate agreements, or consumer protection laws. Users can manage related legal matters by utilizing templates from US Legal Forms, which provide guidance on contracts and agreements pertinent to the dairy industry.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

One example of the Southern Dairy Compact in action is when member states agree to raise the minimum price of fluid milk to support local dairy farmers facing economic challenges. This agreement helps ensure that consumers continue to have access to affordable milk while supporting the livelihoods of dairy producers.

(Hypothetical example) If a state like Georgia experiences a sudden increase in dairy production costs, the Southern Dairy Compact could allow it to collaborate with neighboring states to adjust the minimum price of milk accordingly, ensuring both farmers and consumers are protected.

Relevant laws & statutes

The primary statute governing the Southern Dairy Compact is the O.C.G.A. § 2-20-1, which outlines the purpose and authority of the compact. This law emphasizes the need for interstate cooperation to support the dairy industry in the Southern region.

State-by-state differences

State	Specific Provisions
Georgia	Active participant with specific pricing agreements.
Florida	Different pricing structures based on local production costs.
Alabama	Participates but has unique regulations affecting local dairy farms.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Description	Difference
Milk Marketing Order	A federal or state program that regulates milk prices and marketing.	Focuses on marketing rather than interstate agreements.
Dairy Price Support Program	A federal program that supports dairy prices through government purchases.	Operated at the federal level, unlike the regional compact.

Common misunderstandings

What to do if this term applies to you

If you are involved in the dairy industry in a Southern state, consider reviewing the Southern Dairy Compact to understand how it may affect your business. You can explore US Legal Forms for templates related to agricultural agreements and pricing contracts. If your situation is complex or requires legal interpretation, consulting with a legal professional is advisable.

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Quick facts

Typical fees: Varies by state and agreement.
Jurisdiction: Southern U.S. states participating in the compact.
Possible penalties: Non-compliance with the compact terms may lead to legal action from member states.

Key takeaways

Frequently asked questions

What is the purpose of the Southern Dairy Compact?

Its purpose is to ensure the viability of dairy farming and a stable supply of milk in Southern states.