Dairy Producers Asked to Participate in FMMO Class I Pricing Method Poll

American Dairy Coalition is inviting dairy producers to participate in a short poll on the Federal Milk Marketing Order Class I pricing method.

Coalition CEO Laurie Fisher said, “This poll gives dairy producers the opportunity to show how the Class I pricing change affects them in terms of planning and risk management and to give their preference.”

The ADC board, along with several state and regional dairy organizations, have publicly supported the idea of asking Congress to legislatively return to the previous Class I skim pricing method of using the ‘higher of’ Class III or IV advance skim pricing factors until an FMMO hearing process thoroughly evaluates proposals. The Upside benefit of the new method is 74 cents on Class I, which is around 20 cents on the blend price nationally, but at the same time, there is no limit to the downside risk if market disruptions push Class III and IV apart by more than $1.48 cwt.

Find the pole On-Line.

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