What three products does the federal government purchase to support milk prices?

Study for the FFA Dairy Foods CDE Test. Prepare with diverse questions and detailed explanations to ensure success. Master the material and get ready!

The federal government primarily supports milk prices by purchasing cheese, nonfat dry milk, and butter. This strategy is part of the Dairy Price Support Program, established to stabilize dairy markets and ensure that dairy farmers receive a fair price for their milk.

Cheese is a significant option because it constitutes a substantial portion of U.S. dairy consumption and is highly versatile in food production. Nonfat dry milk serves as a reliable product for both domestic consumption and international trade, acting as a buffer in times of excess supply. Butter is another key product that can be stored and distributed as needed, helping to manage surplus production during periods of low demand.

The other choices include products that may have varying levels of support or market dynamics but do not represent the main focus of federal purchase programs aimed directly at stabilizing milk prices in the way that cheese, nonfat dry milk, and butter do.

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