For California dairy farmers, the central question in USDA's February 14, 2017 recommendation was how payments would reach the farm. Regulated milk handlers would pay minimum prices according to the milk's use. Those payments would be pooled for eligible producers or their cooperatives on a uniform or average-price basis, rather than setting a single supermarket price. [2017-02732]
That shared basis is not a promise that every farm receives the same net check. The recommendation recognized California's quota program, administered by the California Department of Food and Agriculture. If the state continued funding quota through producer money, the proposed federal arrangement would permit an authorized deduction in an amount determined and announced by CDFA. [2017-02732]
The earlier hearing notice, published August 6, 2015, shows why the choice of distribution rules mattered. USDA described four interested-party proposals, some with pricing and pooling provisions absent from existing federal orders. It expressly said the proposed provisions had not received USDA approval. The notice records options under examination, not benefits already delivered to producers. [2015-18704]
By February 2017, USDA recommended statewide coverage and existing federal classification and pricing provisions, with California-specific standards for pool eligibility. Written exceptions were due May 15. Read together, the hearing notice and recommendation establish a proposed payment system within one proceeding. They do not show increased farm income, improved wages or gains shared equally across the people working in dairy. [2017-02732][2015-18704]
Source documents
- Milk in California; Recommended Decision and Opportunity To File Written Exceptions on Proposal To Establish a Federal Milk Marketing Orderhttps://www.govinfo.gov/content/pkg/FR-2017-02-14/html/2017-02732.htm
- Milk in California; Notice of Hearing on a Proposal To Establish a Federal Milk Marketing Orderhttps://www.govinfo.gov/content/pkg/FR-2015-08-06/html/2015-18704.htm