Dairy Groups Seek Broad Focus on Pricing Reform

Five Midwestern dairy groups evaluating solutions to federal milk pricing issues recently sent their comprehensive focus to Agriculture Secretary Tom Vilsack. The groups seek a broad scope of focus should there be a Federal Milk Marketing Orders emergency hearing about reform. In April, the groups announced a proposal called Class III Plus, aimed at creating long-term stability in fluid milk pricing and reducing the likelihood of negative producer price differentials. Class III Plus would tie the Class I price to the Class III skim milk price plus an adjuster and do away with advanced pricing. The letter states, “We believe in order reform, but we would prefer to tackle more than just Class I pricing if we are going to go to the trouble and effort of having a hearing with national scope.” The groups include the Dairy Business Association, Edge Dairy Farmer Cooperative, Minnesota Milk Producers Association, Nebraska State Dairy Association and South Dakota Dairy Producers.