The Minnesota Milk Producers Association introduced its Dairy CORE Program, which stands for Coronavirus Recovery. They say the program will get right to the heart of the industry’s biggest challenge, which is dairy farmers need cash to continue their operations.
Some members of the dairy industry recently proposed to temporarily alter the Federal Milk Marketing Order System. The Minnesota farmers point out that everyone in the industry wants higher milk prices, but arbitrarily bumping prices to a made-up number could cause more harm than good. The people who buy milk at the processing plant, as well as at the store, may decide they no longer need to buy it.
They also point out that while raising the Class 1 milk price would benefit dairies with Class 1 milk, the farms without milk in the Class 1 category would get left behind. Important parts of their CORE Program include distributing Coronavirus Food Assistance Program payments as quickly as possible. They want the Federal Milk Marketing Orders to stay where they are.
They’re also calling for raising or eliminating the cap on direct payments. They say the current payment caps are out of touch with the risk undertaken by even the smallest of dairy operations.