Federal Milk Orders are complicated and confusing – and very difficult to change. Still, there’s grassroot momentum building in the dairy industry for change.
Four Midwestern dairy groups have announced a Federal Milk Marketing Orders proposal aimed at creating long-term stability in fluid milk pricing and reducing the likelihood of negative producer price differentials that cut into farmers’ revenue last year during the pandemic.
The proposal from the Dairy Business Association (DBA), Edge Dairy Farmer Cooperative, Minnesota Milk and Nebraska State Dairy Association comes after the groups began studying options early this year. They said the proposal, which they’re calling “Class III Plus,” aims to build upon the current pricing system, recent proposals by dairy cooperatives, and dairy farmer petitions to define a better Class I pricing system.
Pam Jahnke talked with John Holevoet, Director of Government Affairs for Dairy Business Association, about what they hope the “Class III Plus” plan will accomplish – and how long it may take.