American Farm Bureau Federation and National Farmers Union Urge USDA to Stabilize Class I Milk Prices
Source: The DairyNews
The American Farm Bureau Federation (AFBF) and National Farmers Union (NFU) have jointly sent a letter to Secretary of Agriculture Tom Vilsack, urging the U.S. Department of Agriculture (USDA) to bring stability to Class I milk prices.
The letter, signed by AFBF President Zippy Duvall and NFU President Rob Larew, requests an interim final decision to revert the Class I mover formula to the "higher of" the Class III or IV calculations, as it was before the 2018 farm bill.
In the letter, the AFBF and NFU express concerns about the current pricing regulations affecting dairy farmers, emphasizing the need for an expedited return to the "higher-of" Class I mover formula. The current formula, implemented in the 2018 farm bill, replaced the higher-of the advanced Class III or IV skim milk price formula with the simple average of advanced Class III and IV skim milk formulas plus 74 cents.
The letter states, "Dairy farmers remain stuck with current pricing regulations until USDA publishes a final rule. Current market dynamics underscore the need for expedited return to the ‘higher-of’ Class I mover. The current Class I mover was a well-intentioned but misguided policy that has reduced dairy farmer income."
The 2018 farm bill provision has been criticized for its impact on dairy farmer income, and the AFBF and NFU argue that an emergency implementation of the "higher-of" Class I mover formula is necessary to address the losses incurred by dairy farmers.
The letter highlights that the current formula was established without a hearing record demonstrating its need and has not proven to be revenue-neutral for dairy farmers. The organizations advocate for a return to the "higher-of" formula, citing support from the current hearing record and the rulemaking process when it was first established in 2000.
The joint effort by the AFBF and NFU reflects the concerns within the dairy industry and aims to bring attention to the challenges faced by dairy farmers in the current pricing structure.
Read the letter
In the letter, the AFBF and NFU express concerns about the current pricing regulations affecting dairy farmers, emphasizing the need for an expedited return to the "higher-of" Class I mover formula. The current formula, implemented in the 2018 farm bill, replaced the higher-of the advanced Class III or IV skim milk price formula with the simple average of advanced Class III and IV skim milk formulas plus 74 cents.
The letter states, "Dairy farmers remain stuck with current pricing regulations until USDA publishes a final rule. Current market dynamics underscore the need for expedited return to the ‘higher-of’ Class I mover. The current Class I mover was a well-intentioned but misguided policy that has reduced dairy farmer income."
The 2018 farm bill provision has been criticized for its impact on dairy farmer income, and the AFBF and NFU argue that an emergency implementation of the "higher-of" Class I mover formula is necessary to address the losses incurred by dairy farmers.
The letter highlights that the current formula was established without a hearing record demonstrating its need and has not proven to be revenue-neutral for dairy farmers. The organizations advocate for a return to the "higher-of" formula, citing support from the current hearing record and the rulemaking process when it was first established in 2000.
The joint effort by the AFBF and NFU reflects the concerns within the dairy industry and aims to bring attention to the challenges faced by dairy farmers in the current pricing structure.
Read the letter
