USDA decides on large producer-handler definitions

Just yesterday, the USDA published its decision for producer-handler definitions in all Federal Milk Marketing Orders in the Federal Register. A recommendation was made so that only farms with bottled milk sales of three million pounds or less per month remain exempt from the pooling and pricing provisions. Producer-handlers with sales more than this will be treated as other bottling operations and will have to share their Class I proceeds with other farms in their Federal Order Regions.

The National Milk Producer’s Federation called it a victory for farmers everywhere. “Once it is finalized, this ruling will accomplish what NMPF sought in its initial petition: to stop about a half-dozen large producer-handlers from cherry-picking Class I milk sales at the expense of other producers in Federal Order pools and to discourage other handlers from growing through the use of this unfair exemption,” said Jerry Kozak, president and CEO of NMPF. “These largest operations should no longer enjoy a regulatory loophole intended for smaller players. Once you’re bottling three million pounds of milk monthly, you’re a large plant and should contribute to the marketing pools just like any other large Class I handler.”

Comments on the decision are due on December 21, 2009, and according to the timelines required under the 2008 Farm Bill, a final decision would be due February 22, 2010.