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.
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.
Can we get to the source of the PPD problem?
Producer price differentials (PPDs) have headlined many dairy economic discussions throughout the pandemic. As the negative number printed on milk checks went up and up last summer and fall, producers have raised the pertinent question: Should Federal Milk Marketing Orders (FMMOs) be altered to try to manage PPDs from swinging so far to the negative?
“What does it do?” Cornell’s Andy Novakovic questioned the April 7
“It’s a system of rules. It says this is how this system is going to work. It is not a price support,” Novakovic reminded the audience of federal orders. “They (federal orders) were never designed to guarantee that you would get the cost of production.”
Dairy producers look to reverse the harm caused by Federal Milk Pricing Formula rfdtv.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from rfdtv.com Daily Mail and Mail on Sunday newspapers.
Let s get real! Dairy farmers deserve new pricing formula
Arden Tewksbury
Time is running out for our family-sized dairy farms! However, the Federal Milk Marketing Improvement Act is now resurfacing once again, and the authors, myself and Gerald Carlin, have made some favorable changes in the bill.
For the first time, dairy cooperatives are going to have to pay the same basic formula price to their members as the proprietary handlers have to pay.
No longer will a so-called make allowance be deducted from the basic formula price which has always lowered the price to all dairy farmers.
All buying handlers will take possession of the milk once the milk is pumped into a tanker.