Pennsylvania Farm Bureau members descended on the state Capitol on Tuesday with a list of requests for lawmakers.
High among farmers’ priorities were efforts to strengthen dairy, the state’s largest ag industry.
Farm Bureau is pressing for the modernization of the over-order premium, which is paid to farmers on milk produced, processed and retailed in Pennsylvania. The premium is factored into the state’s minimum retail price, so consumers pay it on every gallon they produce.
If the milk doesn’t meet the three-part test — if it’s taken outside the state for processing, for example — farmers don’t get the money. Instead, the processor keeps it.
The Ag Department has estimated that half of the $20 million of potential premium dollars may be in this situation.
“How is it that we can change the laws to be able to get that premium to be recaptured?” said Chris Hoffman, the Farm Bureau president.
The first step could be licensing retailers, which would allow the state to track how much milk is being sold — and how much qualifies for the premium.
Rep. John Lawrence, R-Chester, has also proposed that the state distribute the premium directly to farmers, instead of relying on processors to forward the payments.
The Milk Marketing Board created the premium in 1988, and Farm Bureau amended its stance on the over-order premium in 2021, sparking the latest push for reform.
Despite years of farmer complaints, specific fixes for the premium have remained elusive. Any change would have to consider the needs of farmers, cooperatives, independent processors and consumers, and it would need to comply with interstate commerce law.
Lawmakers will hear testimony on the premium April 25 at the Capitol, and a Farm Bureau spokesperson will be among the testifiers.
“We’re trying to bring all entities together to come up with a solution,” Hoffman said.
Another way to improve premium capture and strengthen the state’s dairy industry might be to grow processing capacity in Pennsylvania. Farm Bureau is pushing for expanded processing options in dairy and other ag sectors.
“We really believe that we have some great opportunities to bring in some new bottling plants that will change the dairy industry forever,” Hoffman said.
Pennsylvania is believed to be a finalist to host a Fairlife ultrafiltered milk plant.
Source: lancasterfarming.com
Photo Credit: istock-cagkansayin
Categories: Pennsylvania, Livestock, Dairy Cattle