Farms.com Home   News

Reforming Pennsylvania's Dairy Over-Order Premium: What You Need to Know

Reforming Pennsylvania's Dairy Over-Order Premium: What You Need to Know

By Philip Gruber

After years of farmers clamoring for change, Pennsylvania officials are taking another shot at rebuilding the state’s dairy premium.

The latest effort began with Pennsylvania Farm Bureau two years ago and continued in 2022 with hearings by the Milk Marketing Board, which sets the over-order premium.

Now it’s the Legislature’s turn to get involved.

The Pennsylvania Senate Agriculture and Rural Affairs Committee will hold a hearing on the premium 10 a.m. April 25 in Hearing Room 1 of the state Capitol’s North Office Building.

Here is what you need to know about the concerns with the premium, and the possibilities — and difficulties — of reform.

What is the over-order premium?
The over-order premium is a state-mandated payment to Pennsylvania dairy farmers. It is generated by milk that is sold as a fluid product, not turned into cheese or butter, that stays in Pennsylvania for processing and retail sale.

The premium is “over order” because it is paid on top of the Federal Milk Marketing Order price.

The idea is that consumers pay a little extra for milk as a way to support local farmers and maintain a robust supply of milk.

The Milk Marketing Board created the premium on Sept. 1, 1988, to help farmers through a drought that inflated feed costs during a time of low milk prices.

The premium was set at $1.05 per hundredweight, nearly identical (ignoring inflation) to today’s rate of $1 per hundredweight plus a fuel adjuster.

The Northeast’s statistical uniform price — a benchmark milk price — was $20.75 per hundredweight in February, so the premium is a relatively small part of a farmer’s milk check.

But it is the only part of the milk check that the state can control, and it is believed to provide millions of dollars annually to Pennsylvania farms.

Click here to see more...

Trending Video

Genetics Behind Swine Resilience - Dr. Jenelle Dunkelberger

Video: Genetics Behind Swine Resilience - Dr. Jenelle Dunkelberger


In this episode of The Swine it Podcast Show Canada, Dr. Jenelle Dunkelberger, geneticist at Topigs Norsvin, explains how genetics can improve disease resilience in pigs. She explores how resilience differs from resistance, the role of genetic variation, and how breeding strategies can enhance health and performance under disease pressure. Dr. Dunkelberger also covers practical applications and future implications for swine production. Listen now on all major platforms!

"Controlled experimental trials confirm that differences in mortality and performance under disease pressure are linked to genetic background, even when environmental conditions remain consistent."

Meet the guest: Dr. Jenelle Dunkelberger / jenelle-dunkelberger-9200ab86 is a geneticist at Topigs Norsvin, where she leads the Global Health and Behavior Research Platform. She earned her PhD from Iowa State University, focusing on host genetics and disease response in pigs. Her work centers on improving swine health and performance through genetic selection for resilience and behavior traits.