It follows ABC TV’s Four Corners investigation into the damage Murray Goulburn’s devastating milk price cuts and claw backs from earlier this year have had on the industry.
The United Dairyfarmers of Victoria has written to government, dairy processors and regulators calling for the provisions which allow dairy companies to drop their milk price so late in the season to be banned.
Murray Goulburn and Fonterra both cut their farmgate milk price 10 months into the year long season, leaving dairy farmers stranded with existing costs they could not manage.
Adam Jenkins, president of the United Dairyfarmers of Victoria (UDV), said the contracts had to change.
“We understand the nation’s dairy producers are experiencing challenges due to market conditions,” Vilsack said in a release. “MPP-Dairy payments are part of a robust, comprehensive farm safety net that help to provide dairy producing families with greater peace of mind during tough times. Dairy operations enrolled in the 2016 MPP-Dairy program will receive approximately $11.2 million this month. I want to urge dairy producers to use this opportunity to evaluate their enrollment options for 2017, as the enrollment period is currently scheduled to end Sept. 30. By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America’s dairy operations remain successful.”
Dairy producers who enrolled at the $6 through $8 margin trigger coverage level will receive payments. MPP-Dairy payments are triggered when the national average margin (the difference between the price of milk and the cost of feed) falls below a level of coverage selected by the dairy producer, ranging from $4 to $8, for a specified consecutive two-month period. All final USDA prices for milk and feed components required to determine the national average margin for May/June 2016 were released on July 29.
The national average margin for the May/June 2016 two-month consecutive period is $5.76277 per hundred weight, resulting in the following MPP payment rates:
Margin trigger coverage levels payment rate/cwt.
$6.00 $0.23723
$6.50 $0.73723
$7.00 $1.23723
$7.50 $1.73723
$8.00 $2.23723
Source: MagicValley
Link: http://magicvalley.com/business/agriculture/safety-net-assistance-for-milk-producers-due-to-tightening-dairy/article_2c380a43-131c-5175-9ced-588d7ca0040b.html