The National Dairy Products Survey Report (NDPSR) has been an integral part of establishing minimum pricing for dairy farmers since end-product pricing began in 2000. However, the survey has been criticized for not accurately reflecting the value of dairy products sold in the market.
The American Farm Bureau Federation (AFBF) is calling for changes to the NDPSR, including adding 640-pound blocks and unsalted butter to the survey and dropping 500-pound barrels. AFBF argues that these changes would strengthen price discovery and improve market transparency, which would benefit farmers.
The FMMO establishes provisions under which dairy processors purchase milk from dairy farmers supplying specific marketing areas. One of the primary functions of the federal order structure is the calculation of minimum uniform prices paid to farmers.
The AFBF's proposals are supported by many other ag industry groups. The FMMO Pricing Formula hearing is ongoing, and it is unclear whether the AFBF's proposals will be adopted. However, the AFBF's efforts to improve the NDPSR are a step in the right direction for dairy farmers.
Photo Credit: American Farm Bureau
Categories: Michigan, Livestock, Dairy Cattle