Bill H.475 aims to revitalize the Vermont dairy industry by establishing a tiered pricing system for milk. This system will set a minimum price that milk handlers must pay to producers, taking into account the costs of production and environmental compliance specific to Vermont. If the market pricing under the Federal Milk Market Order 1 fails to cover these costs, the bill mandates an over order price enhancement for Vermont milk producers. To prevent overproduction, the bill will categorize farms into small, medium, and large production tiers.

To fund this tiered pricing system and the over order enhancements, a per gallon handling fee will be imposed on packaged milk sold in the state, with the fee adjusted according to the market price paid to producers. The revenue from this handling fee will be directed to the General Fund for annual appropriation. Additionally, the bill requires the Agency of Agriculture, Food and Markets to include a funding request in its annual budget to support the implementation of these pricing measures.