The Class I milk price method poll

American Dairy Coalition wants YOUR input!

Are you a dairy owner, partner, manager? Please take our 2-minute poll about the Class I milk price method:

American Dairy Coalition wants producers to have a voice in milk pricing. ADC facilitated discussions on Federal Milk Marketing Order (FMMO) impacts after the legislative change from ‘higher of’ to ‘average plus 74 cents’ was implemented for Class I base skim pricing in May 2019. Although this 2018 Farm Bill change was meant to be revenue-neutral, we saw pandemic disruptions expose the vulnerabilities as Class I losses piled up in 16 of its first 26 months, impacting functions of FMMO pooling and producer risk management. Currently, this 'average-plus' method is yielding a benefit. When Class III and IV skim prices are equal, the upside benefit is limited to 74 cents on Class I (about 20 cents on blend, nationally). But if market factors drive Class III and IV skim prices apart by more than $1.48/cwt., there is no limit to the downside risk. We want to know how this affects your dairy and what you think should happen. Please take 2 minutes to answer 6 questions below.

Question Title

* 1. The change in FMMO Class I base pricing from using the ‘higher of’ Class III or IV to ‘average plus 74 cents’ affects our ability to do business planning for our dairy operation...

positively

negatively

no effect

Other (please specify)

Question Title

* 2. Complete this sentence: The change from ‘higher of’ to ‘average plus’ for Class I pricing…

Strengthens our confidence and makes it easier to do our risk management

Weakens our confidence and makes it more difficult to do our risk management

Has no effect on our risk management

Other (please specify)

Question Title

* 3. Complete this sentence: I would prefer that Congress…

Direct USDA legislatively to return to the ‘higher of’ method for Class I pricing until a USDA FMMO hearing can thoroughly evaluate both methods and/or other proposals. (meaning... go back to the 'higher of' and start an FMMO hearing process)

Leave the Class I pricing as it is today (average-plus), but direct USDA to begin the FMMO hearing process to thoroughly evaluate the previous ‘higher of’ method, the current ‘average-plus’ method and/or other proposals. (meaning... keep it as it is now and start an FMMO hearing process)

Question Title

* 4. Complete this sentence: I am a dairy farm

owner

partner

manager

non-owner family member

employee involved in business planning

Other (please specify)

Question Title

* 5. What size category best describes your dairy?

under 100 cows

100 to 500 cows

500 to 1000 cows

1000 to 2000 cows

over 2000 cows

Other (please specify)

Question Title

* 6. Identify the Federal Milk Marketing Order region that best describes your dairy's location, even if your milk is marketed outside of the FMMO system

Northeast, Order 1

Appalachian Order 5

Florida and Southeast Orders 6 and 7

Mideast, Order 33

Upper Midwest, Order 30

Central, Order 32

Southwest, Order 126

Pacific Northwest, Order 124

Arizona, Order 131

California, Order 51

Unregulated area such as Idaho

If you don't know your FMMO area, please provide the state(s) in which your dairy operation(s) is/are located