In a positive turn of events, the Pennsylvania Senate Agriculture and Rural Affairs Committee recently convened its inaugural hearing on the topic of the over-order premium (OOP), marking a significant step forward in addressing concerns within the dairy industry.
The hearing, which took place on April 25, featured testimonies from various stakeholders, including the Pennsylvania Milk Marketing Board, Ag Secretary Russell Redding, the Pennsylvania State Grange president, and representatives from the dairy sector.
During the hearing, the Milk Marketing Board shed light on the historical context of the premium and the existing collection and distribution processes. Board members offered their unique perspectives as dairy farmers, industry advocates, and consumer representatives, collectively recognizing the flaws within the system and the need for a thorough review and revision.
Sen. Elder Vogel, the chair of the ag committee, and Sen. Judy Schwank, the minority chair have indicated that their recommendations focused on swift action, the development of a comprehensive plan that caters to all Pennsylvania dairy farmers, and the initiation of separate discussions on collection and distribution, with priority given to resolving collection issues.
The current system involves a premium established by the board as part of the producer price, with consumers bearing the cost when purchasing milk. However, one major flaw lies in the exemption of out-of-state wholesalers from paying the premium to Pennsylvania producers. Additionally, the requirement for the premium to be applicable only to in-state production limits its effectiveness.
One potential solution proposed is for the state to collect the premium during transactions taking place in Pennsylvania, with the funds ultimately entering the general fund and being allocated by the Legislature. Potential distribution methods include equal payments to all dairy farmers or a tiered system based on sales volume.
Many farmers supports a multi-year planning process, beginning with equal distribution to all farmers and gradually transitioning to a tiered structure. This phased approach allows for the development of an accurate and efficient distribution system over time.
Furthermore, passing Senate Bill 840would enable the licensing of "big-box" distributor stores and provide crucial data for the Milk Marketing Board's calculations and revisions of the OOP structure.
The Pennsylvania Milk Marketing Board is enthusiastic about participating in these ongoing discussions, as they have long recognized the inequitable distribution of premium funds under the current system. Their commitment lies in enforcing state laws while actively supporting necessary changes to benefit the dairy industry and the citizens of Pennsylvania.
For any inquiries or concerns, the Pennsylvania Milk Marketing Board remains available for contact, with the columnist reachable at 717-210-8244 or via email at chardbarge@pa.gov.
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Categories: Pennsylvania, Government & Policy, Livestock, Dairy Cattle