Dairy Farmers Top $1 Billion in Losses from 2018 Farm Bill Change to Class I Pricing System
While the dairy industry awaits Ag Secretary Tom Vilsack’s decision on petitions for a national Federal Milk Marketing Order hearing, and its scope, dairy farmers continue to lose money as a result of the 2018 farm bill change to how farmers are paid for Class I fluid milk. The change was made without a hearing, without a comment period, and without a producer referendum.
“American Dairy Coalition has been working on this issue since 2020. Today, we see the net loss that has accumulated for dairy farmers since the ‘average of’ method was implemented will exceed $1 billion next month,” said Laurie Fischer, ADC’s CEO. “The ‘average of’ formula has effectively taken 55 cents per hundredweight away from farmers on all Class I milk over the past 52 months. When you net that out to a blended price based on a 28% Class I use nationwide, it’s a 16-cent loss on every hundredweight of milk shipped. That’s like paying an additional checkoff for 52 months.”
By AMERICAN DAIRY COALITION
July 21, 2023