Former Governor Baldacci worked with the Maine Legislature to create this first-in-the nation mechanism to help stabilize price fluctuations for dairy farmers in our state.
The stabilization program has prevented a greater rate of loss of Maine dairy farms. Several studies have reaffirmed that the Maine loses dairies at a slower rate than other states in the Northeast region. For example, a study by University of Maine’s Dylan Bouchard that examined the program since its original inception concluded, that it is“…not only valuable in that it prevents farm exits, but also in that it enables farms to remain in business longer.” A paper authored by researchers from Emory University, University of North Carolina, and University of Maine noted that without the tier program, “…our results indicate that there would have been approximately 67% fewer farms and 70% less milk produced in the Maine dairy industry by the end of the observed period.”
An element of the underlying legislation that allows this program to stay relevant is the requirement that cost of production figures are regularly updated by the Maine Milk Commission. These cost of production figures are based on an objective survey – nearly 80% of Maine dairy operations responded to the survey.
Maine Dairy Stabilization Program
Time Period Tier 1 Tier 2 Tier 3 Tier 4
2004 – 2006 $16.18 $15.59 $13.12 n/a
2006 – 2010 $18.68 $16.23 $15.43 n/a
2010 – 2012 $20.70 $18.07 $17.29 $16.51
2012 – 2022 $21.00 $20.36 $18.01 $17.83
2022-Present $23.05 $21.44 $20.93 $20.21