Concerns over USDA’s dairy policy revisions

Recent communications between the American Farm Bureau Federation (AFBF) and Agriculture Secretary Tom Vilsack reveal deep concerns regarding proposed changes to the Federal Milk Marketing Orders. 

AFBF President Zippy Duvall articulated apprehensions that these changes might disrupt the delicate balance necessary for equitable operations between dairy producers and processors.

The proposed policy adjustments that worry the AFBF include not modifying the Class II differential, introducing a new class for ESL milk, and postponing the implementation of new milk composition factors. These could severely affect the financial health of American dairy farmers by altering the foundational pricing mechanisms of the industry.

A significant point of contention is the recommended increase in make allowances based on what the AFBF considers to be questionable survey data, risking biased pricing adjustments that do not truly reflect manufacturing costs.

On a positive note, the AFBF applauds several recommendations, such as restoring the "higher-of" pricing formula for Class I milk and enhancing Class I

price differentials, which are seen as steps to support dairy farmers' income.
The discussion underscores the AFBF’s role in scrutinizing policy shifts that could affect the livelihood of U.S. dairy farmers. 

By lobbying for adjustments that truly reflect the needs and realities of the industry, the AFBF seeks to ensure that the dairy market remains robust and fair for all stakeholders involved.