The way milk is priced at the federal level ultimately affects shoppers in the stores. But it’s a complicated process that includes a minimum price set by the feds and a market premium above that set by groups like the Dairy Farmers of America. Those in the industry say, often, both the consumer and the producer get a raw deal.

“The consumer ends up sometimes paying more than they should for milk. And obviously farmers lose because they don’t get paid enough,” said Bill Nelson of Ryegate.

Seven years ago, Vermont farmers filed a class-action lawsuit against the Dairy Farmers of America or DFA saying it used its monopoly over the industry to keep prices down. The suit included between 7,000 and 9,000 farmers across the Northeast.

“And the complication is that DFA, being a co-op, is acting in its members’ interest. So they claimed on their side that they weren’t doing anything contrary to their members’ interest,” said Dan Smith, co-counsel in the case.

But instead of a lengthy trial, both sides have reached a settlement– $50 million. If approved by the court, the average payout per farm will be around $4,000. Details of the settlement were explained to farmers at a forum in Wells River Tuesday. Lawyers representing them say, ultimately, the settlement should lead to more transparency in the industry and better prices for farmers in the Northeast, which in turn could be good news for shoppers who want to know where their milk is coming from.

“To the extent that the market for milk in New England is more vibrant, then it is more likely that farmers will be in business making your milk supply more locally supplied,” Smith said.

Farmers like Bill Nelson, who has been in the industry for nearly five decades.

“I just hope farmers become more vigilant,” Nelson said.

“Obviously, you have to love it to be in it,” Lisa Knapton said.

Knapton milks 100 cows just over the New Hampshire border in Piermont.

“I am hopeful that it is a stepping off point for cracking the nut for the future. For the whole industry. Making it more current,” Knapton said.

Farmers have until April 29 to weigh in by writing a letter to the court. The settlement goes before a federal judge in Burlington next month.