Federal Legislation in the US Proposed to Increase Transparency of Milk Pricing
Bipartisan legislation has been introduced in the U.S. Senate and House of Representatives that would require manufacturers to report their dairy processing costs every two years. The proposed law is seen as a move to ensure transparency and fairness in milk pricing, benefiting both dairy producers and consumers. New York dairy farmers, along with other stakeholders, have shown support for this initiative.
“New York dairy farmers deserve to be paid a fair price for their milk, and they need a milk pricing system that they can count on,” said U.S. Sen. Kristen Gillibrand. The legislation aims to give dairy producers and processors access to reliable data that accurately reflects production costs, ensuring fair pricing.
The Fair Milk Pricing for Farmers Act, sponsored by Reps. Nick Langworthy and Joe Morelle, calls for mandatory audited surveys regarding make allowances, which determine the costs processors deduct before paying dairy farmers. This initiative is supported by organizations such as the New York Farm Bureau and the National Milk Producers Federation.
This proposed legislation is a significant step toward reforming the current federal pricing structure known as the Federal Milk Marketing Orders, aligning it with contemporary market conditions. If enacted, it would establish a biennial reporting requirement to ensure transparency in the dairy pricing system.
