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Dairy Export Incentive Program

A program that offers subsidies to exporters of U.S. dairy products to help them compete with other nations. USDA pays cash to exporters as bonuses to help them sell certain U.S. dairy products at prices below the exporterís cost of acquiring them. The program was originally authorized by the Food Security Act of 1985 and extended by the FACT Act of 1990 and the Uruguay Round Agreements Act of 1994. The total tonnage and dollar amounts of these and other export subsidies have been limited by the Uruguay Roundís agreement on agriculture. The FAIR Act of 1996 extends the program through 2002, and permits its use for market development in addition to offsetting the subsidies of other countries.


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