§ 106-812. Findings.
Article 68A.
North Carolina DairyStabilization and Growth Program.
§ 106‑812. Findings.
(a) The GeneralAssembly finds that North Carolina has suffered a significant loss of itstraditional industrial and agricultural economic base. The State's dairy industryis at serious risk of total collapse unless milk prices reach levels sufficientto allow dairy farmers to meet production costs. At the same time, NorthCarolina is experiencing rapid population growth and urbanization. This growthand urbanization have fueled a rapid loss of prime agricultural land and greenspace, resulting in a decline in the quality of life for which the State isknown.
(b) The GeneralAssembly finds that the dairy industry in North Carolina makes a substantialeconomic, environmental, and quality-of-life contribution to the well‑beingof the citizens of the State. The dairy industry, including both producers andprocessors, currently contributes over six hundred million dollars($600,000,000) and 3,000 jobs to the State's economy. Properly managed dairyfarms help maintain green space, keep prime agricultural land under production,maintain water quality, enhance food security, and provide a local supply offresh milk at a reasonable cost to the consumer and to processors in the State.An adequate local milk supply has become increasingly important astransportation costs escalate, making the importation of milk from out‑of‑stateincreasingly expensive. The General Assembly finds, however, that despite itsimportance to the State's economic and environmental well‑being, NorthCarolina's dairy industry is under severe economic pressure, and milkproduction is declining at an alarming rate. According to United StatesDepartment of Agriculture statistics, since 1985 the State has lost sixty‑sevenpercent (67%) of its dairy farms and thirty‑five percent (35%) of itsprocessing facilities. North Carolina dairy farms no longer produce sufficientmilk for North Carolina's processing facilities to operate. Milk must beimported 10 out of 12 months each year to keep these processing facilitiesfunctioning. Further, farm prices for milk exhibit great volatility, creatingfinancial risk and discouraging investment. The General Assembly finds that itis essential to a viable North Carolina dairy industry to have locally producedmilk available to processors in the State. The General Assembly further findsthat it is essential to the well‑being of the citizens of the State tohave a local supply of fresh milk available at reasonable cost and not subjectto the vagaries of transportation costs and production conditions in otherregions of the country.
(c) The GeneralAssembly finds that one of the primary reasons for the decline in milkproduction in the State is the gap between the price paid to farmers for milkunder the federal milk programs and the actual cost of production. Inability tomeet production costs combined with increasing land prices have led many milkproducers to sell their farms for development and retire or turn to otheremployment. The General Assembly finds that the most effective means to ensurethe continuation of a viable dairy industry in this State is to establish aprice floor for milk to enable dairy farmers to meet their production costs. Itis the intent of the General Assembly to establish a price support program thatwill stabilize and reverse the decline in the local milk supply and in thedairy industry in the State and encourage new producers to enter the dairyindustry. Sustaining and growing North Carolina's dairy industry will advancethe State's goals of preserving and enhancing its economic base and improvingthe quality of life in the State through maintaining green space and waterquality and assuring an adequate local supply of fresh milk. (2006‑139, s. 1.)