News

Class I milk mover changes don’t need to wait

The leader of a dairy group says there is no need to wait for a farm bill to change how Class I milk prices are determined.

Laurie Fischer with the American Dairy Coalition tells Brownfield when the Class I mover changed from the higher of Class III and Class IV to the average of Classes III and IV plus 74 cents, Congress provided a way to evaluate and change it. “We did go back into looking at that language when it was originally adopted in the last farm bill when it was passed, and it did say that there should be a hearing to at least evaluate, and we haven’t had that.”

Fischer says the American Dairy Coalition is reminding everyone of this because they want the most expeditious way to return to the old higher-of formula.  She says ADC also wants to have hearings on the Federal Milk Marketing Orders, saying the sustainability of the orders is questionable. “We continue to see milk handlers, processors, corporations, co-ops, all milk marketing that are leaving Class I fluid utilization, and when that continues to happen, the price is built off of Class I.”

Fischer says she’s concerned about what will happen to the entire federal milk marketing order system if Class I fluid milk utilization continues to fall.