After listening to several people testify at the recent hearing of the Milk Marketing Board, the board made the decision to continue the present level of the over-order premium at $1 per cwt [per hundred pounds of milk] for the remainder of 2022. 

In all probability, very few people are against all dairy farmers receiving the premium. All of our dairy farmers deserve a fair price for their milk.

But what can be done in order for all dairy farmers to receive a fair price for their milk?

Unfortunately, the only farmers who benefit from the premium are those who produce milk in PA, and whose milk is bottled and sold in this state.

Everyone must realize that those of us who developed the present over-order premium never felt that the premium was the answer to correct many of the inequities facing the majority of dairy farmers. 

However, we did hope that the U.S. Congress or the U.S. Department of Agriculture (USDA) would develop a pricing formula that would be fair to all dairy farmers across the nation.

Since Congress and the USDA have failed to develop a real pricing formula, some states—like Pennsylvania—must continue the present premium structure.

How can a new premium be structured to help every dairy farmer in Pennsylvania? Where will the money come from to fund any additional premiums? 

We experienced the same problem when we had the Regional Cooperative Marketing Association (RCMA) premium in the northeast. Ever since the RCMA program was eliminated, we’ve made an effort 1) to have more dairy farmers who will support a realistic pricing formula, and 2) to have more support from milk handlers to make the premium work. 

We don’t need any more dairy cooperatives to sign special agreements with milk handlers, agreeing not to charge them premiums on milk, as happened in the RCMA days.

So, basically, we are still heavily involved in trying to get better prices for our dairy farmers. We must have a realistic pricing program that will make all farmers happy.

Now, back to the board’s decision. It appears that the board will insist that all buying handlers that are involved with the premium must have line items on all of their dairy farmers’ milk checks indicating the amount of premium that they individually pay the farmer.

This action will help dairy farmers realize how much each producer will receive. 

It is unfortunate that we have not developed more premiums like the ones we had with the former Durling and Readington farms, premiums initiated by Pro-Ag in the 1990s. These premiums put millions of dollars in the farmers’ milk checks. Can this be reinstated?

Arden Tewksbury is the manager of Pro-Ag, an organization that lobbies for fair milk pricing. Pro-Ag can be reached at 570/833-5776.