The dairy industry is pursuing changes to federal milk pricing procedures. However, there is no consensus among industry groups. The International Dairy Foods Association (IDFA) sent a petition to the U.S. Department of Agriculture (USDA) last month. The core of the petition filed by IDFA is increasing make allowances for the first time since 2008. At the same time, the Wisconsin Cheese Makers Association (WCMA) filed their own petition with a different method for pricing. USDA has until April 29 to issue a decision on whether to move forward on the petitions.
The American Farm Bureau Federation (AFBF) has sent a letter to Agriculture Tom Vilsack encouraging the rejection of the IDFA and WCMA petitions. AFBF points out “grave concerns” with the two petitions that have been submitted. The group cites the need for more “comprehensive adjustments” to the Federal Milk Marketing Order (FMMO) system.
“We believe the petitions submitted by IDFA and WCMA are incomplete,” AFBF President Zippy Duvall stated in the letter. “Petitions to amend a federal order must contain a description and quantification of the expected impact on all segments of the industry, including dairy farmers, handlers, consumers and small businesses. The proposals submitted by IDFA and WCMA lack this vital information.”
Industry groups had been convening for months but failed to reach a unanimous set of priorities for changes to federal milk pricing. The National Milk Producers Foundation (NMPF) is now seeking its own set of changes to the FMMO system. The NMPF Board of Directors endorsed a proposal at its March meeting. While NMPF acknowledges that make allowances need adjusting, the group is encouraging more frequent reviews by USDA. Other components of the NMPF proposal include a return to the “higher of” Class I mover and updated milk component factors for protein, other solids, and nonfat solids in the Class III and IV skim milk price formulas. NMPF is expected to file its separate petition later this month.
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