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USDA Moves Ahead with Class I Surcharge Due to Hurricane Damage In a widely anticipated move, the U.S. Department of Agriculture (USDA) announced on November 18 that it will make emergency amendments to provisions of the Appalachian, Southeast and Florida Milk Marketing Orders, which were hit hard by hurricanes earlier this year. Pending approval in a producer referendum, USDA will implement a temporary supplemental charge on Class I milk that will be disbursed to handlers "who incurred extraordinary transportation costs for moving bulk milk to maintain the Class I needs" of the three weather-beaten orders.As reported last month in News Update, USDA held an emergency hearing in Atlanta on October 7 to consider the surcharge, which was proposed in a petition by four cooperatives: Dairy Farmers of America, Lone Star Milk Producers, Southeast Milk, and Maryland & Virginia Milk Producers. The co-ops believe that the funds would help both dairy cooperatives and manufacturers in the affected regions offset financial losses experienced as a result of the hurricanes in August and September. There was no testimony in opposition to the petition. Given the petitioners' request to have the change implemented by January 1, USDA is expected to move quickly in conducting the necessary producer referendum in order to approve the amendments. For USDA's announcements on this issue, click here.
Posted November 22, 2004
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