The American Farm Bureau and National Farmers Union sent a letter to USDA asking for stability in Class 1 milk prices. The letter asks Ag Secretary Tom Vilsack to issue an interim final decision to return the Class 1 mover formula to the “higher-of” the Class 3 or Class 4 calculations as it was before the 2018 farm bill.
The letter states, “Dairy farmers remain stuck with the current pricing regulations until USDA publishes a final rule. Current market dynamics underscore the need for an expedited return to the ‘higher-of’ Class 1 mover.”
The current Class 1 mover was a well-intentioned but misguided policy that has reduced dairy farmer income. Emergency implementation of the higher-of Class 1 mover formula will staunch persistent losses associated with a policy that has left dairy farmers struggling to make ends meet. Many say the current formula was based on a quick decision and not demonstrated need.
