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AFBF optimistic for milk pricing consensus

Dairy industry leaders are meeting this weekend to discuss possible reforms to the Federal Milk Marketing Order.

American Farm Bureau Federation economist Danny Munch tells Brownfield much of the discussions are expected to focus on why a majority of milk in the U.S. is managed by co-ops but does not have to abide by federal order minimums.

“You have a lot of milk that has the opportunity to be paid less than the order system and operate outside of those regulations,” he says.  “That has to be central to the conversation because it’s difficult to come up with a plan that protects all farmers if a lot of milk moves outside of it.”

Munch believes a consensus is possible.

“If we’re able to look at a bird’s eye view and the broader underlying structure of Federal Orders, I think farmers will have a lot easier chance of coming together and finding a pathway forward,” he says.

Ag Secretary Tom Vilsack has been calling for the dairy industry to find solutions between farmers and processors before calling for a hearing with USDA to make updates.

Brownfield’s Larry Lee will be on the ground covering the event in Kansas City, Missouri.

Brownfield interviewed Munch during the American Dairy Coalition’s Federal Milk Pricing Work Session at World Dairy Expo.