What system encouraged dairy farmers to maintain sufficient herds to meet milk demands?

The Ag Marketing Agreement Act is designed to promote and stabilize agricultural markets, which includes managing the supply of products like milk to ensure they meet consumer demand. This legislation allows for the creation of marketing orders that can help dairy farmers by establishing minimum prices and regulating the handling and marketing of milk. Through these measures, farmers are incentivized to maintain sufficient herds to avoid shortfalls in production, thereby helping to stabilize the milk supply.

In contrast, the Dairy Marketing Order specifically focuses on the marketing aspects of dairy products but is a subset of the broader Ag Marketing Agreement Act which encompasses various agricultural commodities. The Food Safety Modernization Act is primarily concerned with improving safety standards in food production and does not directly relate to supply management. The Cattle Improvement Program mainly targets genetic improvements and does not address the market supply issues faced by dairy farmers. Therefore, the Ag Marketing Agreement Act is the most relevant in the context of encouraging dairy farmers to maintain adequate herd sizes to meet milk demands.