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Dairy Facts 2016
 
 

USDA Announces Final Decisions on Milk Pooling Provisions

Sep 11, 2006

USDA Announces Final Decisions on Milk Pooling Provisions

Last Wednesday, the U.S. Department of Agriculture (USDA) announced final decisions to adopt amendments to the pooling provisions of the Central, Mideast and Upper Midwest Milk Marketing Orders. If producers approve these amendments through a referendum, USDA will issue final rules for each of these marketing orders to implement the changes on a permanent basis.

The amendments to the Central Milk Marketing Order will limit the volume of milk a handler can pool in a month to 125% of the total volume of milk pooled in the previous month. They also will increase supply plan performance standards; amend certain features of the pool qualification provisions; and decrease the diversion limit standards of the order.

The amendments to the Mideast Milk Marketing Order will limit the volume of milk that a handler may pool during the months of April through February to 115% of the volume pooled in the prior month; during the month of March, the volume of milk that a handler may pool will be limited to 120% of the volume of milk pooled in the prior month.

The amendments to the Upper Midwest Milk Marketing Order will limit the volume of milk that a handler may pool during the months of April through February to 125% of the volume pooled in the prior month; during the month of March, the volume of milk that a handler may pool will be limited to 135% of the volume of milk pooled in the prior month. In addition, the Upper Midwest amendments will allow the market administrator to increase the maximum administrative assessment up to 0.8¢ per hundredweight on all pooled milk, if necessary to maintain the required fund reserves.

Also last Wednesday, USDA announced a tentative and partial decision recommending amendments to the transportation credit provisions of the Appalachian and Southeast Federal Milk Marketing Orders. This decision will establish a mileage rate factor; increase the maximum transportation credit assessment rate for both orders; and establish diversion limits on eligible Class I milk receiving transportation credits.

USDA is accepting comments on the recommended amendments for the Appalachian and Southeast Milk Marketing Orders until November 13.

For more information on any of these decisions, visit the USDA news releases section at www.ams.usda.gov/news/newsrel.htm.

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Posted September 11, 2006

 
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