Dairy farmers seek fair milk prices in reform proposals

Jul 03, 2024

AFBF comments on proposed changes to Federal Milk Marketing Orders by USDA

By Farms.com

The American Farm Bureau Federation (AFBF) has expressed its views on the USDA’s proposed amendments to all 11 Federal Milk Marketing Orders (FMMOs). In a statement, AFBF President Zippy Duvall acknowledged both positive aspects and concerns regarding these proposals.

Duvall appreciated the USDA’s decision to hold a hearing to address issues related to milk pricing, which AFBF has been advocating for since 2021. He welcomed the return of the Class I skim milk price to the ‘higher-of’ formula, a key demand of AFBF.

He also voiced disappointment over changes that appear to benefit processors without considering the plight of dairy farmers, many of whom are struggling and have even gone out of business.

A significant concern for AFBF is the proposed changes to make allowances without a mandatory, audited survey of processors’ costs. Duvall emphasized the need for fairness and transparency in the pricing formula, stating that dairy farmers deserve accurate and unbiased data to ensure they receive fair compensation. AFBF’s commitment to FMMO reform was evident through their efforts in organizing an industry-wide forum in 2022.

Representatives from AFBF participated in nearly all 49 days of the USDA hearing in August 2023. Their testimonies were based on extensive work by dairy farmer members and policy established through AFBF’s grassroots development process, as well as recommendations from the 2022 FMMO Forum.

AFBF plans to submit detailed comments on the USDA’s recommended proposals and encourages its members to participate in the process. The organization is dedicated to advocating for a fair and transparent milk marketing system that supports the interests of all dairy farmers.

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