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The Spring 2012 letter to State dairy farmers from the Commissioner of Agriculture stated: -The Connecticut Dairy sustainability program relies on cost of production (COP) estimates, historically provided by the USDA -The Act states that when the federal pay price for milk drops bellow the sustainable monthly COP, farmers become eligible for financial support in the form of grant payments given on a quarterly basis -These grant payments are determined using the best available COP estimates-The USDA does not provide monthly COP estimates for CT, so numbers from the State of Vermont have been used as a proxy for CT -These numbers likely do not reflect the true COP in the State -This project was implemented to produce accurate COP estimates for CT dairy famers, so they receive the appropriate level of support

The average total cost of production for milk in Connecticut in 2011 is $31.52/cwt, based on a sample of 39 state dairy producers. Additional total cost of production (COP) estimates are provided for different farm-size classes, ranging from $26.05/cwt for the largest size class to $35.76/cwt for the smallest. The most significant costs to CT dairies are feed and labor, which make up close to 60% of total COP and are primarily responsible for the variation seen in the projected 2012 monthly COP estimates. Monthly estimates of the 2012 CT COP for milk are based on the 2011 COP, which is adjusted using USDA NASS indices and CT production figures for the corresponding month. The estimated COP for milk in CT has increased in every month in 2012, from $31.97/cwt in January to $39.10/cwt in September. The Statistical Uniform Price (SUP) for milk in Hartford, CT decreased monthly for the first half of 2012 and increased in each month of the third quarter, resulting in a net increase from January to September. Given the monthly trends in COP and the SUP, the value of payments to CT dairy farms under CT Public Act 09-229 has increased month-to-month from $6.95/cwt in January to $12.71/cwt in September.