Impact of Generic Milk Advertising on New York State Markets, 1986-2003
Kaiser, Harry M.; Wang, Yu; Schmit, Todd M.
Under the Dairy and Tobacco Adjustment Act of 1983, farmers are assessed 15 cents per hundredweight (cwt) on all milk sold in the contiguous United States. In 2003, New York dairy farmers contributed approximately $17.93 million to federally-authorized dairy promotion and advertising funds. These contributions are allocated not only to the national program,1 but also to the regional, state, and local programs operating in markets where milk is ultimately sold. The federal legislation specifies that at least 5 cents of the 15 cent per cwt checkoff must be allocated to the national program, and allows for credits of up to 10 cents per cwt for contributions to authorized regional, state, or local promotion programs. In 2003, of the $17.93 million paid by New York dairy farmers, approximately $11.95 million was allocated to regional, state, and local programs operating in the markets where New York milk is sold.
NICPRE 04-04; R.B. 2004-11
Charles H. Dyson School of Applied Economics and Management, Cornell University