This week the Senate Agriculture Sub Committee on Dairy held a hearing looking at possible changes in the Class I Milk Pricing Formula. Iowa State Dairy Association Executive Director Mitch Schulte says the hearing was needed because a change in that formula brought about in the 2018 farm bill led to an estimated $750 million in losses for farmers compared to the previous Class I formula.

He says a major fix is needed in the formula pricing that will bring forth a well thought out resolution but it will take time to get that done.

Schulte says whatever Congress comes up with needs to make sure both dairy producers and processors have a beneficial formula system to work with.

Schulte says his group is working with a Federal Milk Marketing Order Task Force which has had this issue on their radar screen for some time and will continue until a viable solution is found.