PROGRESSIVE
AGRICULTURE ORGANIZATION
RR
2,
PH:
570-833-5776 FX: 570-833-5992
e-mail:
progressiveagricultureorg@gmail.com
GUEST
EDITORIAL by Arden Tewksbury, Manager, Pro Ag
LET’S
NOT THROW THE BABY OUT WITH THE BATHWATER
Recently,
various news sources are claiming that dairy farmers are in complete agreement
that the Dairy Price Support Program (DPSP) should be eliminated along with
abolishing the Federal Milk Marketing Orders (FMMO). Others are claiming that
if the prices paid to dairy farmers were lowered to the “world price”
level, then this action could eliminate the imports of dairy products and lead
to a large increase in the domestic production of milk protein concentrate (MPC),
which they allege is in high demand in
the
Evidently,
I am missing a lot.
Over
the last 18 months, I have met with nearly two thousand dairy farmers, and I
have never heard from dairy farmers that the Dairy Price Support Program
should be eliminated or that the Federal Milk Marketing Orders should be
abolished, and certainly, I never heard anyone advocate that our milk prices
paid to American dairy farmers should be lowered to allow an increase in the
production of domestic milk protein concentrate!
What
I have heard is that dairy farmers want a new milk pricing formula that allows
the dairy farmers’ cost of production to be covered. Also, the farmers are
willing to support and fund an inventory management program in order to
maintain an adequate raw milk pay price. They definitely support a milk
pricing system that will be fair to all dairy farmers across the
Let’s
observe some facts about the Federal Milk Marketing Orders. The Federal Milk
Marketing Orders were created for many reasons.
(1). The individual states appear not to have the authority to
adequately price the interstate shipments of milk. This is a big reason why
the FMMO system was originated.
(2). In the 1920’s and into the early 1930’s, many milk handlers
and some dairy cooperatives mistreated dairy farmers and paid them unfairly.
(3). The Federal Milk Marketing Orders do assure dairy farmers that the
private milk handlers are paying the dairy farmers the announced milk price.
(4). Accuracy of milk weights and component tests paid to dairy farmers
are checked by FMMO officials.
(5). A really large responsibility of the FMMO is
to be sure that milk is used as classified and reported to Market
Administrators, assuring dairy farmers that they receive the full value of all
milk sold and get paid on time.
There
are many more important reasons to support the FMMO’s.
Please
understand that the Market Administrators cannot establish a higher milk price
to dairy farmers than the amount allowed by the formula that was established
by the USDA. The formula is the big problem.
Some of us testified three times to USDA against the implementation and
continuation of the current pricing formula that was put in place in 2000,
with the passage of the infamous “Federal Order Reform.”
It
was rather lonely in those hearings with almost everyone else “gung ho”
for
the
current pricing system. Now, many of the
strong supporters of this current
pricing
formula want changes after experiencing the past ten years of abysmal
farm
milk prices.
This
is why Senators Arlen Specter (D-PA) and Robert P. Casey, Jr., (D-PA)
introduced
“The Federal Milk Marketing Improvement Act of 2009.” They
realized
that dairy farmers were not receiving a fair, stable milk price from the
current
pricing system. They also realized that a small
amount of extra milk
being
produced gave the needed ammunition that allows the current milk pricing
system to devalue the price paid to dairy
farmers which consequently placed extreme, unnecessary hardships on the
majority of dairy farmers, and this is the reason why many dairy farmers have
been forced out of business.
Yes,
there is always room for improvements in the FMMO system. “The Federal
Milk
Marketing Improvement Act of 2009” provides several critical
improvements
to the FMMO system, and it does not preclude future
amendments
to the Orders. The most important aspect of these improvements is
that
“The Federal Milk Marketing Improvement Act of 2009” revamps the
pricing
system in the Orders and assures that dairy farmers’ cost to produce raw
milk will be factored into the price they receive.
Under
provisions in the last Farm Bill, a Dairy Industry Advisory Commission was
formed to work with the US Secretary of Agriculture to focus on many problems
including the volatility of the milk prices paid to dairy farmers and the
profitability on our dairy farms. Some dairy farmers are expressing concerns
that this is a move that could lead to recommending the termination of the
FMMO system. Let’s not be so careless to support the elimination of the
Federal Orders. As I said earlier, let’s not throw the baby out with the
bathwater.
In
another editorial, I will address the Dairy Price Support Program.
Pro
Ag can be reached at 570-833-5776 or by e-mail at progressiveagricultureorg@gmail.com