|
No Indications that USDA Plans a Tilt Change Despite widespread speculation, IDFA reports that there are no signs that the U.S. Department of Agriculture (USDA) intends to raise the federal support purchase price for butter in the near future. With respect to the relative USDA purchase prices for butter and nonfat dry milk, USDA has the authority to raise one and lower the other up to two times each calendar year, as long as the two prices are intended to return $9.90 per hundredweight of milk to farmers; the USDA last changed this "tilt" in November 2002."We're hearing rumor after rumor that USDA is considering another large hike in butter prices, but we're not expecting USDA to make a move anytime soon," said IDFA President and CEO E. Linwood Tipton. Under the Dairy Price Support Program, the current purchase price for NFDM is $0.80 per pound and the purchase price for butter is $1.05 per pound. Posted June 16, 2003
|
