WASHINGTON — A federal appeals court Tuesday rejected a challenge to the Northeast Interstate Dairy Compact, an arrangement that allows New England dairy farmers to get more money for their milk.
Upholding a lower court’s ruling, a three-judge panel of the U.S. Court of Appeals said the Agriculture Department’s approval of the compact was justified.
Dairy processors, consumer groups and Upper Midwest farmers had objected to creation of the compact while the Agriculture Department works on an overhaul of the nation’s dairy-pricing system.
The compact is a regional commission that sets the price of milk in the six New England states. It allows dairy farmers in those states to get more money for their milk than farmers elsewhere.