The National Milk Producers Federation in the US has said it has received around 2,400 applications from dairy farmers wanting to join its supply reduction programme.

The programme, called Cooperatives Working Together, is aimed at raising milk prices by reducing milk supply, reported The Associated Press.

Farmers willing to cut back on milk production in exchange for cash payouts sent bids to the federation, who will pass the bids on to an independent auditor. The lowest bids are to be accepted.

“While we had no way of knowing how many bids would be submitted, the volume that we actually received is an indication of the economic pressures confronting farmers – the same conditions that we expect to improve through the CWT program,” Jerry Kozak, the federation’s president and CEO, was quoted by AP as saying.