Dairy producers have approved changes to the Federal Milk Marketing Order, but not all groups are on board.
USDA’s Ag Marketing Service says the yes vote includes changes to “make allowances.”
“What we had to do is look at what was proposed. Obviously, nobody got exactly what they asked for. So, we looked at both sides and evaluated and weighed out what we thought the sweet spot was going to be, if you will, in making those changes because we recognize the significant impact that it has when we make any changes within the federal order system. So, after extensive analysis and extensive input from the industry, we determined that where we came out is about as good as we can get,” said Dana Coale.
The Farm Bureau applauds USDA’s move on the “Higher Of” Class 1 Milk Formula, but group President Zippy Duvall says, “However, the positive changes that will come as a result of these reforms will not be uniform for dairy farmers across the country and will be greatly offset by large, unjustified increases in make allowances.”
He adds the system relies on fairness and wants USDA to require an audited survey of processing costs.
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
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