MADISON – On Sep. 13, Wisconsin Farm Bureau submitted comments to the United States Department of Agriculture regarding proposed revisions to the Federal Milk Marketing Orders.
The letter, submitted jointly with Minnesota Farm Bureau, expressed opposition to USDA’s recommendations. Although WFBF supports the pricing formula change from “average of” to “higher of” and USDA’s recommended class I differentials, WFBF opposes raising make allowances.
“While a switch back to the ‘higher-of’ class I base price, elimination of the barrel cheese price, and increases in composition factors and class I differentials are designed to better reflect current market realities and improve overall pricing for farmers, the recommended make allowance increases is so large that it would wipe out these gains, particularly in Federal Order 30 with high class III and IV utilization,” wrote WFBF Director of National Affairs Tyler Wenzlaff in the letter.
Over the past eight years, Wisconsin has faced some of the highest rates of dairy farm bankruptcies in the nation. USDA’s proposed FMMO reforms are expected to exacerbate this issue, leading to further consolidation and bankruptcies, particularly affecting producers in Federal Order 30, where farmers bear significant financial losses compared to other regions.
At a time when more than $8 billion is being invested in processing plant expansions across the country, declining net farm income and shrinking farm cash receipts pose serious concerns. Ensuring dairy farmers receive a fair FMMO is critical. Without equitable income distribution, small dairy farms will continue to disappear, driving further industry consolidation.
To read the full letter, click here. To view WFBF’s FMMO resource center and submit your own comments, click here.
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