Dairy Farm Income Enhancement Proposals

Dairy Industry Framework for Self-Regulation

Submitted by Thomas Olson

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Posted by Amos Zimmerman on September 1, 2018 at 8:56 pm

This one is easy and simple. It make a lot of sense it would work for all sizes of farm.

Posted by Tom Olson on August 21, 2018 at 9:05 pm

Derek I love the idea of having handlers put a no cost base on all farms, and having the handler allow expansion if other farms who are willing to sell base. Great Idea! Thanks

Posted by Derek England on August 21, 2018 at 5:02 pm

Tom, I also think this is a great proposal. A lot of the financial stress on dairy farmers we have seen since 2014 is as much due to market adjustments and other deductions from Federal Order price as the milk price itself. This proposal also squarely addresses the problem of individual farms being dropped due to loss of markets. One concern I have under this proposal is that during times when more milk is needed, one producer could expand more than others, causing others to bear the responsibility for his extra production when milk is long. I think this could be solved by requiring milk handlers to establish a transferable base production for all its patrons. No value needs to be assigned, the free market will determine it. This would allow for new producers as well as allowing existing producers to purchase the right to expand from his fellow patrons. The handler could adjust to milk needs by simply adjusting this base up or down evenly across the board.

To answer the concern about farms shipping directly to a processor, this plan appears to apply to them the same as anyone else.

Posted by Tom Olson on August 21, 2018 at 1:39 pm

J.R.Burdick .Thanks for the comment. We need to pass this idea along. Feel free to share it. I hope to get my dairy plant owners to weigh in. Their are groups of farmers with different organizations that do have will and energy. I hope we can tap into them.

Posted by JR Burdick on August 21, 2018 at 9:40 am

This is a great proposal Tom. The frame work is there the will isn't. Also large farms who have direct shipments to processors outside of the CO-OP system must be held accountable in this action. This is the best proposal out there as it has the least amount of gov. intervention and is most quickly put into place.

Posted by Tom Olson on August 19, 2018 at 10:02 am

Thanks for your comment Melissa. Right now only privately owned dairy plants have to pay federal order minimums,and they do because the federal order makes sure of it. My plant made a mistake on the ppd and I received a letter from the federal order explaining that I was short payed a few cents per hundred and on the next check it was payed to me. This is proof to me that my idea could work well with the existing system of federal orders.

Posted by Melissa Bravo on August 18, 2018 at 12:21 pm

Great framework, Tom. Wouldn't it be great if there was a Federal Oversight Agency, or in State Dairy Commissioner responsible for ensuring this was in practice now. An audit agency working on behalf of the cooperative members to make sure they are being properly protected. I can't speak for all of these, but several seem like protection measures that should already be in place to protect the producer from unfair and or favoritism practices. Could you identify if any of these steps are already authorized in statute or contracts but not enforced or not put into practice?