Last week, the Pennsylvania Farmers Union hosted a meeting regarding a proposed bill to revamp milk pricing. A consortium of 33 grassroots farming and rural organizations proposes the Federal Milk Marketing Improvement Act of 2007. The Congressional legislative council is currently working on the bill’s wording, and supporters expect it to be introduced to Congress shortly.
The act would base minimum milk price on a national cost of production figure calculated by USDA’s Economic Research Service. It also would create a single fluid milk price across the country and change milk classifications. The new system would classify all milk used in manufacturing processes as Class II — which supporters believe would offer producers a higher price.
The bill also calls for the end of make allowances.
Supporters claim that the changes instituted by the proposed legislation would only raise consumer milk prices by about 7 cents.
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