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USDA Proposes a Limitation on Producer-Handler Exemption On April 13, the U.S. Department of Agriculture (USDA) published a recommended decision to establish a limitation to the producer-handler exemption in the Pacific Northwest and Arizona-Las Vegas Milk Marketing Orders. The decision comes just weeks after IDFA, National Milk Producers Federation (NMPF) and the chairs of both the House and Senate Agriculture Committees all urged USDA to render a decision on the issue, since it has been a year since USDA closed the hearing process on the matter.At issue is a federal exemption given to dairy farmers who process milk from their own farms and market the products themselves; unlike other farmers and processors within a federal order area, these producer-handlers have been largely exempt from Federal Milk Marketing Order pricing and pooling requirements. However, there has been significant growth of sizable producer-handler operations in recent years, resulting in millions of pounds of unregulated milk and putting regulated producers and processors at a competitive disadvantage. "We're pleased that USDA has moved ahead on this issue, which has been pending for far too long," noted IDFA Chief Economist Bob Yonkers. "There needs to be equitable treatment of all dairy producers and processors within the Federal Milk Marketing Order system." There is now a 60-day public comment period on USDA's recommended decision. After USDA reviews submitted comments and releases a final decision, the issue must be approved in a producer referendum in each of the two affected milk marketing order areas. If producers vote to approve the decision, USDA can implement the ruling. To read USDA's announcement on the producer-handler limitation, click here to visit the department's website.
Posted April 18, 2005
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