By Jennifer Whitlock
Field Editor
Dairy farmers and agricultural organizations have been calling for modernization and changes to the Federal Milk Marketing Order (FMMO) for quite some time.
Groups, including the American Farm Bureau Federation (AFBF), say the current system is outdated, confusing and leaves dairy farmers without a true voice in the milk marketing process.
Now, a bill introduced by Sens. Susan Collins (R-Maine), Kirsten Gillibrand (D-New York) and Patrick Leahy (D-Vermont) would require the U.S. Department of Agriculture (USDA) to host FMMO reform hearings within six months of passage.
The legislation, the Dairy Pricing Opportunity Act, gives dairy farmers a chance to speak directly to USDA about the challenges and frustrations they face in the current FMMO process. They’ll also be able to make suggestions for improvement, according to Gillibrand, who represents New York, the fourth-largest dairy state in the nation.
“I’ve been very frustrated in the farm bill process. I’ve wanted to renegotiate how we price dairy for literally 10 years, and I’ve been told no every time,” she told a group of reporters after announcing the bill. “So, this is at least a bipartisan start well in advance of the farm bill to have these hearings.”
In September, the Senate Agriculture Committee’s Subcommittee on Livestock, Dairy, Poultry, Local Food Systems and Food Safety and Security, of which Gillibrand is chair, held a milk pricing hearing. The message from dairy farmers was clear—change is needed, and it’s needed now.
“The current milk pricing system is one of the most complicated economic systems in the country and leaves too many farmers without adequate pay, especially as costs rise and competition intensifies,” a press release from her office said.
Shortly after the September hearing, an AFBF Dairy Working Group released a report detailing findings on the FMMO system. It was the second AFBF working group report, due to the complexity of FMMOs.
Large imbalances in the pricing and pooling of milk has resulted in losses of hundreds of millions of dollars for dairy farmers across the nation, according to Tracy Tomascik, Texas Farm Bureau associate director of Commodity and Regulatory Activities.
Changes to FMMOs have been needed, but Tomascik said the coronavirus pandemic served to really underline that need.
“Dairy farmers are having a hard time remaining competitive for a number of reasons, but FMMOs have definitely played a role,” he said. “We need a more transparent FMMO system with more uniform milk pricing rules across the U.S. to ensure a level playing field for all dairy farms, no matter the size or location.”