American Farm Bureau Federation Chief Economist Roger Cryan testified at the ongoing Federal Milk Marketing Order Pricing Formula hearing.
Farm Bureau membership includes cooperatives and independent dairy farmers, most of whom are directly or indirectly affected by the pricing provisions in the FMMOs.
Farm Bureau’s testimony focused on the reduction or elimination of negative producer price differentials and the de-pooling they cause.
An orderly pool is the key to orderly marketing and the continued benefits of the Federal Milk Marketing Orders for farmers, cooperatives, processors, and consumers.
The key to an orderly pool is the proper alignment of the four Class prices. Other proposals include supporting the National Milk Producers Federation’s suggestion to drop barrel cheese from Class 3 component and price calculations.
AFBF also proposes that 640-pound blocks get added to the National Dairy Sales Report, to the cheddar cheese price calculation, and to the Class 3 protein calculation.