New Report Examines Dairy Price Support Policies Across the Northeast

For dairy farmers in the Northeast, profitability depends on factors outside their control. Milk prices fluctuate while production costs continue to rise. When milk prices fall below the cost of production, the financial pressure can be considerable and, ultimately, create the conditions that lead to dairy farm exits.

While dairy remains an important part of the agricultural economy in the Northeast (worth nearly $5 billion across the states served by Farm Credit East¹ ), the industry has been impacted by changing market conditions and consolidation. Since 1997, Massachusetts, Maine and Connecticut have each lost more than 60% of their dairy farms, even as net earnings for some farms continues to increase.²

To help address these pressures, these three states administer dairy price support programs designed to supplement farm income when market returns fall below production costs. While the programs share similar goals, they differ significantly in their structure, funding sources and payment mechanisms.

Farm Credit East’s Knowledge Exchange team recently published a new report, A Review of Dairy Price Support Programs in Massachusetts, Maine and Connecticut, to explore how these programs work and what makes each approach unique.

Three States, Three Different Approaches

The report examines the dairy price support program in each state:

• The Massachusetts Dairy Farmer Tax Credit is a refundable tax credit program disbursing $8 million annually to more than 80 farms
• Maine’s Dairy Stabilization Program is a unique entitlement program with tiered payment rates based on production volume
• Connecticut’s Dairy Sustainability Grant distributes quarterly payments determined by funding assigned from real estate transfer fees

Although their designs vary, research into all three programs shows that they accomplish similar objectives: helping dairy farms remain viable, slowing farm exits and supporting the broader rural economies that depend on a health dairy sector. None of these programs are designed to guarantee profitability, but they do help close the gap between milk prices and production costs and have come to be foundational pillars for the regional dairy community.

Whether you’re a dairy producer, industry stakeholder, policymaker or simply interested in agricultural economics, this report provides a detailed look at how three Northeast states are approaching one of dairy farming’s most persistent challenges.

Read the report summary or download the full report to learn more about the structure, funding, impacts and future considerations of these programs. 

 ¹Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. Dairy sales valued at $4,862,713,000 in 2022.
 ²2025 Northeast Dairy Farm Summary & Mid-Year Outlook, Farm Credit East (2026)