Senators Urge USDA to Restore Fair Milk Pricing Formula Amidst Ongoing Farmer Losses
Source: The DairyNews
Senator Kirsten Gillibrand, Chair of the Senate Agriculture Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security, spearheaded a bipartisan effort with 13 other senators, urging the USDA to revert to the "higher of" Class I pricing formula for fluid milk through the Federal Milk Marketing Order (FMMO) system. This formula was altered in the 2018 Farm Bill, leading to significant revenue losses for dairy farmers over the past five years.
In their letter, the senators outlined the economic damage inflicted by the current pricing formula, which has cost dairy farmers over $1.1 billion in lost Class I skim milk revenue. They argued that the previous formula, in place for nearly two decades before its modification, ensured fair compensation for dairy producers and stabilized milk pricing.
The group also highlighted the broader economic implications of the failing dairy pricing system, emphasizing the urgent need for action. The bipartisan appeal included signatures from Senators across both parties, such as Roger Marshall (R-KS), Bob Casey (D-PA), and others, reflecting widespread concern over the issue.
The letter to Secretary Tom Vilsack called for immediate action to address the deficiencies of the current Class I mover formula as part of the ongoing modernization of the FMMO system. The senators pressed for the restoration of the "higher of" mover in the USDA's upcoming decisions, citing its alignment with the FMMO's goals of promoting stable milk pricing and ensuring adequate fluid milk supply.
The group also highlighted the broader economic implications of the failing dairy pricing system, emphasizing the urgent need for action. The bipartisan appeal included signatures from Senators across both parties, such as Roger Marshall (R-KS), Bob Casey (D-PA), and others, reflecting widespread concern over the issue.
The letter to Secretary Tom Vilsack called for immediate action to address the deficiencies of the current Class I mover formula as part of the ongoing modernization of the FMMO system. The senators pressed for the restoration of the "higher of" mover in the USDA's upcoming decisions, citing its alignment with the FMMO's goals of promoting stable milk pricing and ensuring adequate fluid milk supply.
