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Farmers question Perdue about FMMO’s, block-barrel prices at World Dairy Expo

Ag Secretary Sonny Perdue is open to looking at the complicated milk marketing order system. 

Perdue fielded questions from farmers during a town hall meeting, and one of the questions was about the complicated Federal Milk Market Order system.  “Those are very complex structures that have been in place for a number of years.  Our role at USDA is to balance between the consumer and the producer to make sure that people are playing fair and by the rules, and what makes sense for one and the other, and we’ll look at that as well as the Federal Milk Marketing Order.”

One farmer asked about the spread between the price of cheese blocks and barrels, saying, “We can no longer collectively roll our eyes, rather I formally ask the USDA to open theirs to this important issue.  All dairy products, prices of milk are priced off the block-barrel CME, so it’s important that we get it right.  Barrel production comes from sixteen or less plants, which makes up six percent of the nation’s dairy supply, yet has 58% impact of all producer’s checks.”

Perdue says USDA is willing to investigate how farm prices are impacted.