Farm Bureau Testifies at FMMO Hearing

Farm Bureau Chief Economist Roger Cryan testified on behalf of the group’s membership at the Federal Milk Marketing Order Pricing Formula hearing. His testimony underscored the need for updating Class 1 and Class 2 price differentials to bring fairness for farmers back into the Federal Milk Marketing Orders.

Class 1 differentials are meant to incentivize the movement of milk to where it’s demanded and assist in maintaining regional production capacity in a manner that provides consumers with consistent access to fresh milk. The Class 2 differential is meant to represent the higher value of Class 2 milk, which is used in dairy products like ice cream, cottage cheese, and sour cream, while Class 4 milk is used in butter and dairy products.

“Our proposal is the reduction or elimination of negative producer price differentials and the de-pooling they cause,” Cryan said in his testimony. “An orderly pool is key for orderly marketing.”