Four Midwest Dairy groups are offering an alternative proposal to a change to the Federal Milk Marketing Orders. That’s in contrast to one proposed by the National Milk Producers Federation. John Holevoet, Government Affairs Director for the Dairy Business Association says their Class III plus plan ties the Class 1 milk price to the Class 3 milk price.
He says their Class III plus plan calls for a set adjuster and an end to advance pricing.
Minnesota Milk Producers Association Executive Director Lucas Sjostrom says by tying Class 1 to Class 3 price, that’ll also be beneficial for cheese plants.
Nebraska State Dairy Association Executive Director Kris Bousquet says it’s likely there will be a federal milk marketing hearing held by the USDA and it’s critical Midwest dairymen have a seat at the table with this proposal.
The National Milk Producer Federation’s proposal would modify the current Class I mover, which adds $0.74 cents per hundredweight to the monthly average of Classes III AND IV by adjusting this amount every two years based on conditions over the prior 24 months with the current mover remaining the floor.
The four Midwest dairy groups include the Dairy Business Association, the Edge Dairy Farmer Cooperative, the Minnesota Milk Producers Association and the Nebraska State Dairy Association.
