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Producers Approve Farm Milk Price Hike in Southeastern Region

Mar 17, 2008

Producers Approve Farm Milk Price Hike in Southeastern Region

The U.S. Department of Agriculture announced today that producers in the Southeast, Florida and Appalachian marketing areas have approved the Class I differential increases issued as a tentative decision by the department late last month. The increases will apply beginning May 1. All other provisions in the tentative final rule, which include changes to the diversion limits, touch-base provisions and transportation credits, become effective tomorrow, March 18.

Because this decision is not supported by the facts of the current marketplace, which show that record-high farm milk prices and abundant milk supplies abound, IDFA views the decision as politically motivated. For more details on IDFA's position, click here to read "Political Maneuvering on Federal Order Issues Sets Dangerous Precedent," a recent column by Connie Tipton, IDFA president and CEO.

Although the tentative rule is being implemented, USDA is accepting comments through April 29. IDFA plans to file comments that oppose the Class I differential changes.

For more information, contact Bob Yonkers, IDFA vice president and chief economist, at byonkers@idfa.org or 202-220-3511, or John Rutherford, IDFA assistant director of economic analysis, at jrutherford@idfa.org or 202-220-3514.

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Posted March 17, 2008

 
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