Dairy Price Support Program

This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages) The examples and perspective in this article may not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (December 2010) (Learn how and when to remove this message) This article includes a list of references, related reading, or external links, but its sources remain unclear because it lacks inline citations. Please help improve this article by introducing more precise citations. (January 2017) (Learn how and when to remove this message) (Learn how and when to remove this message)

In the United States, the Dairy Price Support Program is the federal government program that maintains a minimum farm price for milk used in the manufacture of dairy products. It is one of many agricultural support programs. Under the dairy program, the United States Department of Agriculture (USDA) indirectly assures a minimum price for milk by purchasing any cheddar cheese, nonfat dry milk, and butter offered to it by dairy processors at stated prices. These purchase prices are set high enough to enable dairy processors to pay farmers at least the support price for the milk they use in manufacturing these products.

The 2002 farm bill (P.L. 107-171, Sec. 1501) mandated a support price of $9.90/cwt, effective through December 31, 2007, when the program by law was scheduled to expire. The farm bill also established a Milk Income Loss Contract (MILC) program that makes direct payments to participating dairy farmers whenever the minimum monthly market price for farm milk used for fluid consumption in Boston falls below $16.94 per hundredweight (cwt.). The MILC program has been reauthorized until September 30, 2012.^{[citation needed]}

The DPSP was cancelled though the Agricultural Act of 2014.^[1]