By Travis Cleven
Apr 29, 2021 | 5:53 AM
The proposal from the Dairy Business Association (DBA), Edge Dairy Farmer Cooperative, Minnesota Milk, and Nebraska State Dairy Association comes after they took a look at options early this year. They said the proposal, which is deemed âClass III Plus,â aims to build off of the pricing system currently in place, proposals by dairy cooperatives, and dairy farmer petitions to figure out a better Class I pricing system. âOur proposal looks to the future. It would make lasting changes to the milk pricing system that will limit negative PPDs (Producer Price Differential) in the future and the possible negative effects from future crises,â DBA President Amy Penterman said.
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PROPOSED REFORMS: Less than a week after the National Milk Producers Federation’s board of directors asked for an emergency hearing to address issues with the federal milk pricing system, four Midwest dairy groups have announced their own plan to reform the system. A proposal by four Midwest groups would tie fluid milk prices to cheese and do away with advanced pricing.
Suggested Event
Aug 31, 2021 to Sep 02, 2021
Less than a week after the National Milk Producers Federation’s board of directors asked for an emergency hearing to address issues with the federal milk pricing system, four Midwest dairy groups have announced their own plan to reform the system.
Dairy Margin At its base, milk pricing in the U.S. is complicated (How Milk Is Priced in Federal Milk Marketing Orders: A Primer). And the variations in milk checks from farm-to-farm (even neighbors), month-to-month, and cooperative-to-cooperative, and from cooperative to proprietary handler take the pricing complexities to another level. Prices paid to dairy farmers depend upon where the farm is located, where the milk was delivered and pooled, the fat and protein content in the milk and the cooperative- and handler-specific premiums and assessments. Put simply, every dairy farmer in the U.S. likely receives a different price per hundredweight for their milk.
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