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After listening to several people testify at the recent hearing of the Milk Marketing Board, the board made the decision to continue the present level of the Over Order Premium at $1 per CWT for the remainder of 2022.
In all probability, very few people are against all dairy farmers from receiving the premium. All of our dairy farmers deserve a fair price for their milk.
The question is what can be done in order for all dairy farmers to receive a fair price for their milk. Unfortunately, the only farmers that benefit from the premium are those who produce milk in this state, whose milk is bottled and sold in this state.
Everyone must realize that those of us that developed the present Over Premium, never felt that the premium was the answer to correct many of the inequities facing the majority of dairy farmers.
However, we did hope that the US Congress or the US Dept of Agriculture (USDA) would develop a pricing formula that would be fair to all dairy farmers across the nation.
While the US Congress and the USDA have failed to develop a real pricing formula for all dairy farmers, the result is that some states like Pennsylvania, must continue the present premium structure that could be paid to every dairy farmer.
The problem is how can a new premium be structured to help every dairy farmer in Pennsylvania. Where will the money come from to fund any additional premiums?
We experienced the same problem when we had the Regional Cooperative Marketing Association (RCMA) Premium in the Northeast. Ever since the RCMA program was eliminated, we’ve made an effort 1) to have more dairy farmers who will support a realistic pricing formula, 2) to have more support from milk handlers to make the premium work.
We don’t need anymore dairy cooperatives to sign special agreements with milk handlers agreeing not to charge them any premiums on milk like in the RCMA days when they did that.
So, basically, we are still heavily involved in trying to get better prices for our dairy farmers. We must have a realistic pricing program that will make all farmers happy.
Now, back to the board’s decision. It appears that the board will insist that all buying handlers that are involved with the premium must have line items on all of their dairy farmers milk checks indicating the amount of premium that they individually pay the farmer.
This action will help dairy famers to realize how much each producer will receive.
It is unfortunately that we develop more premiums like the ones we had with the former Durling and Readington farms that Pro-Ag initiated in the 1990s. These premiums put millions of dollars in the farmers’ milk checks. Can this be reinstated?
Arden Tewksbury is manager of the Progressive Agriculture, a national group of farmers lobbying for fair marketing of milk. Pro-Ag can be reached at 570-833-5776.