Farms.com Home   Ag Industry News

Concerns over USDA’s dairy policy revisions

Sep 17, 2024
By Farms.com

Recent communications between the American Farm Bureau Federation (AFBF) and Agriculture Secretary Tom Vilsack reveal deep concerns regarding proposed changes to the Federal Milk Marketing Orders. 

AFBF President Zippy Duvall articulated apprehensions that these changes might disrupt the delicate balance necessary for equitable operations between dairy producers and processors.

The proposed policy adjustments that worry the AFBF include not modifying the Class II differential, introducing a new class for ESL milk, and postponing the implementation of new milk composition factors. These could severely affect the financial health of American dairy farmers by altering the foundational pricing mechanisms of the industry.

A significant point of contention is the recommended increase in make allowances based on what the AFBF considers to be questionable survey data, risking biased pricing adjustments that do not truly reflect manufacturing costs.

On a positive note, the AFBF applauds several recommendations, such as restoring the "higher-of" pricing formula for Class I milk and enhancing Class I

price differentials, which are seen as steps to support dairy farmers' income.
The discussion underscores the AFBF’s role in scrutinizing policy shifts that could affect the livelihood of U.S. dairy farmers. 

By lobbying for adjustments that truly reflect the needs and realities of the industry, the AFBF seeks to ensure that the dairy market remains robust and fair for all stakeholders involved.


Trending Video

U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!