The National Milk Producers Federation unanimously endorsed a proposal to modernize the Federal Milk Marketing Order milk-pricing system, and FarmFirst Dairy Cooperative says it’s a step in laying a solid foundation.
“Trying to modernize federal milk marketing orders is no small feat and becomes quite the balancing act when involving every milk shed across the country,” explains FarmFirst General Manager Jeff Lyon. He also sits on the NMPF board of directors. “The recommendations approved by the Board of Directors are the result of many months of meetings by the taskforce and the Economic Policy Committee to address the needs of the various regions of the country.”
The NMPF recommendations address the Class I mover, milk composition, dairy product specifications and make allowances.
The NMPF recommendations include going back to the “higher of” for the Class I mover. FarmFirst originally advocated for returning to using the “higher of” for the mover in the spring of 2021 because of its proven track record and the fact that it was fully vetted in a national hearing process more than 20 years ago.
“In 2021 we believed going back to the using the “higher of” would best address the large negative PPDs in 2020 due to reasons related to the COVID-19 pandemic, the large spread between Class III and Class IV prices, and lastly, the large increase in Class III prices over a short period of time which encouraged Class III handlers to significantly depool their milk from their respective federal order,” Lyon continues.
He notes there’s still a lot of work to do, and other ideas will surface. But adds the recent announcement provides a solid foundation.
“Now, we need to keep this proposal moving forward,” he says.
FarmFirst Dairy Cooperative represents farmers in Wisconsin, Minnesota, South Dakota, Michigan, Iowa, Illinois and Indiana. It provides legislative and regulatory advocacy, dairy marketing services, disaster protection, laboratory testing opportunities and industry promotion.
Lyon tells Mid-West Farm Report what else the cooperative is working on as we approach the Nov. 8 election, more 2023 Farm Bill discussions and the FarmFirst appreciation dinners and member meetings.
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