Vermont § 1801 - Statement of purpose, findings, and declaration of policy

§ 1801. Statement of purpose, findings, and declaration of policy

• (a) The purpose of this compact is to recognize by constitutional prerequisite the interstate
  character of the northeast dairy industry and to form an Interstate Commission for
  the northeast region. The mission of the Commission is to take such steps as are necessary
  to assure the continued viability of dairy farming in the northeast, and to assure
  consumers of an adequate, local supply of pure and wholesome milk. (b) The participating states find and declare that the dairy industry is the paramount
  agricultural activity of the northeast. Dairy farms, and associated suppliers, marketers,
  processors, and retailers, are an integral component of the region’s economy. Their
  ability to provide a stable, local supply of pure, wholesome milk is a matter of great
  importance to the health and welfare of the region. (c) The participating states further find that dairy farms are essential to the region’s
  rural communities and character. The farms preserve open spaces, sculpt the landscape,
  and provide the land base for a diversity of recreational pursuits. In defining the
  rural character of our communities and landscape, dairy farms also provide a major
  draw for our tourist industries. (d) By entering into this compact, the participating states affirm that their ability
  to regulate the price which northeast dairy farmers receive for their product is essential
  to the public interest. (e) Assurance of a fair and equitable price for dairy farmers ensures their ability to
  provide milk to the market and the vitality of the northeast dairy industry, with
  all the associated benefits. (f) Recent, dramatic price fluctuations, with a pronounced downward trend, threaten the
  viability and stability of the northeast dairy region. Historically, individual state
  regulatory action has been an effective emergency remedy available to farmers confronting
  a distressed market. The federal order system, implemented by the Agricultural Marketing
  Agreement Act of 1937, establishes only minimum prices for dairy products, without
  preempting the power of states to regulate milk prices above the minimum levels so
  established. Based on this authority, each state in the region has individually attempted
  to implement at least one regulatory program in response to the current dairy industry
  crisis. (g) In today’s regional dairy marketplace, cooperative rather than individual state action
  may address more effectively the market disarray. Under our constitutional system,
  properly authorized, states acting cooperatively may exercise more power to regulate
  interstate commerce than they may assert individually without such authority. For
  this reason, the participating states invoke their authority to act in common agreement,
  with the consent of Congress, under the compact clause of the Constitution. (h) In establishing their constitutional regulatory authority over the region’s fluid
  milk market by this compact, the participating states declare their purpose that this
  compact neither displace the federal order system nor encourage the merging of federal
  orders. Specific provisions of the compact itself set forth this basic principle. (i) Designed as a flexible mechanism able to adjust to changes in a regulated marketplace,
  the compact also contains a contingency provision should the federal order system
  be discontinued. In that event, the Interstate Commission is authorized to regulate
  the marketplace in replacement of the order system. This contingent authority does
  not anticipate such a change, however, and should not be so construed. It is only
  provided should developments in the market other than establishment of this compact
  result in discontinuance of the order system. (Added 1993, No. 57, § 1, eff. June 3, 1993.)