> Under the system established in the 1930s, the farther a state was from Eau Claire, the higher were the federal price subsidies paid to its dairy farmers on milk sold for bottling.
> For example, the maximum subsidy, or differential, paid to Wisconsin dairy farmers is $1.20 per 100 pounds of milk, while farmers in southern Florida are paid $4.18 per 100 pounds.
California is even further away.
The particulars of it are at https://www.gpo.gov/fdsys/pkg/GAOREPORTS-RCED-95-97BR/html/G...
It is still based in part on Eau Claire. https://www.bostonglobe.com/business/2013/06/08/what-does-bo...
Between water policy, oversupply during the Eau Claire Base Point and existing subsidies... California is a very odd place to produce milk and the cheap milk is a legacy of those policies.
And the last spring and hot summer in Eau Claire ( http://www.aos.wisc.edu/%7Esco/clim-history/stations/eau/eau... & https://madison.com/wsj/business/usda-wisconsin-milk-product... ) will impact the price of milk there, along with the tariff spat with Canada... which in turn changes the amount of the subsidy across the country.