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.