News

Milk pricing formulas need regular updates

Ag leaders say the call for a Federal Milk Marketing Order review will hopefully make it a more common occurrence.

Jim Mulhern with the National Milk Producers Federation tells Brownfield he was involved in the last reform process in 2000.

“We can make periodic adjustments in make allowances over time so we don’t have a 15-year gap between adjustments,” he says.  “Our proposal is to do an interim adjustment in those make allowances, get the audited data for the future, and be able to make further adjustments down the road.”

Michigan Farm Bureau Senior Industry Specialist Ernie Birchmeier tells Brownfield it’s been too long since dairy pricing reform was discussed industry-wide.

“Once every 20 or 30 years isn’t getting the job done—it needs to be done more often—that can lead to more positive changes for our dairy farmers,” he says.

Both the American Farm Bureau and NMPF are asking for a comprehensive approach to improving the system.