The U.S. Department of Agriculture last Friday issued an extension of the Dairy Forward Pricing Program to allow producers and cooperative associations to enter into forward price contracts under the program through September 30, 2013. . The department also extended all other program requirements outlined in the October 2008 final rule until September 30, 2013. That rule allows handlers operating within federal marketing orders to establish forward contracts with producers or cooperatives for all monthly Class II, III and IV milk purchases.
The Dairy Forward Pricing Program allows producers and producer cooperative associations to voluntarily enter into forward price contracts with handlers for milk under the Agricultural Marketing Agreement Act of 1937. The 2008 Farm Bill initially prohibited new forward contracts from being entered into after September 30, 2012, and it did not allow forward contracts to extend beyond September 30, 2015.
The American Taxpayer Relief Act of 2012, signed into law last month, revised the program to allow new contracts to be entered into until September 30, 2013. Any forward contracts entered into until the deadline on September 30, 2013, are still subject to the September 30, 2015, cutoff date.
For more information, contact Bob Yonkers, IDFA vice president and chief economist, at firstname.lastname@example.org.