Guest Editorial by Arden Tewksbury/Manager, Progressive Agriculture Organization  3/14/2011
 
DAIRY FARMERS, THIS COULD BE YOUR LAST OPPORTUNITY
 
Now that the National Milk Producers Federation has issued some more information regarding their proposal identified as the "Foundation For the Future"; the time is of the essence that all dairy farmers look at various proposals, and see which one makes the most sense..
NMPF claim their proposal will end "end product pricing" as the method to determine the price that dairy farmers will receive for their milk..
NMPF also claim their proposal will end the bothersome make allowance terminology.
As I told them in California last fall; its time National Milk tells the whole story.
Under NMPF's proposal the value of milk will be determined by a competitive pricing system.  Under this proposal several processing plants will be surveyed to determine what the processors choose to pay dairy farmers for milk used for manufacturing dairy products.
Sure they will claim that various processors will compete for milk supplies to determine what each processor will pay the dairy farmers for milk.  However, there is no real proof that this system will pay producers any more or maybe even as much as end product pricing will pay dairy farmers.
However, in my opinion, the most serious claim is that dairy farmers will not have to deal with the bothersome terminology of make allowances.  Not so!  You can be sure when the prices paid to dairy farmers for milk used for mandatory dairy products is announced the processor will have their cost disguised in their price.  It's time this is revealed to dairy farmers.  
NMPF is still using margin insurance in their proposals.  I haven't heard very many dairy farmers say they think the government or the dairy farmers should have insurance programs as a method to help pay dairy farmers for their milk.  There are other items in NMPF's proposal to be addressed, but not now.
What dairy farmers must realize is there is a better way to solve the inequities facing dairy farmers.  In my opinion it's time for dairy farmers to take a hard and serious look at the "Federal Milk Marketing Improvement Act of 2009."
While some adjustments are being made to the Act, the dairy farmers will still receive a pay price predicated on the National Cost of Production.  The adjustments should allow processors to recover their cost in the marketplace. 
The milk supply management program is being made more farmer-friendly to allow the dairy farmer to manage their production of milk.  This program will be paid for by dairy farmers.  This proposal still doesn't tell dairy farmers how much milk to produce, but there must be a market for their milk.  This milk supply management program is contingent upon all dairy farmers receiving a fair price for their milk.
The Bill also addressed the bothersome, unneeded imports of some dairy products like milk protein concentrate, casein, etc.
Remember, the Bill still says, if a proposed amendment to any Federal Milk Marketing Order is defeated; the Federal Order stays intact.
So dairy farmers, do you want a fair price paid to you on what it costs to produce your milk, without any handout from the federal government?  Or do you want to be at the mercy of what milk processors pay you for your milk plus an insurance policy to help cover your costs.
The decision is yours, but you must speak up in a hurry, or it may be too late.