U.S. Sen. Susan Collins (R-ME) thinks the nation’s current milk pricing system is one of the most complicated economic systems in the country and leaves too many farmers without adequate pay, especially as costs rise and competition intensifies.
In response, the senator on Dec. 1 introduced the Dairy Pricing Opportunity Act of 2021, S. 3292, which would require the U.S. Department of Agriculture (USDA) to hold hearings on the Federal Milk Marketing Order (FMMO), in turn, allowing producers and industry stakeholders to consider and review proposals that could change Class I skim milk pricing, according to information provided by Sen. Collins’ office.
“Our dairy farmers have always worked tirelessly to provide high-quality, nutritious products for Maine people,” said Sen. Collins, the lead original cosponsor of S. 3292. “We must address the obstacles that threaten to prevent them from carrying on that tradition.”
S. 3292 would require the USDA Secretary to initiate the hearings within six months of the bill’s enactment. The hearings would include review and consideration of views and proposals of producers and the dairy industry on the Class I skim milk price, according to the text of the bill.
“Maine dairy farmers are resilient, and for years they have been weathering the storms of market instability and industry consolidation,” Sen. Collins said. “The Dairy Pricing Opportunity Act would help restore some stability to this sector by ensuring that USDA holds public hearings to receive farmers’ input on ways to correct the unintended consequences of a pre-pandemic pricing policy.”
The bill has received endorsements from the American Farm Bureau Federation, the American Dairy Coalition, and the Maine Dairy Industry Association.
“I heard from producers across the industry firsthand during my subcommittee hearing on dairy pricing and the message was clear – our dairy pricing system is inadequate, out of date, and working against producers,” said bill sponsor U.S. Sen. Kirsten Gillibrand (D-NY). “That’s why I introduced the Dairy Pricing Opportunity Act, a bill that would put the power back in farmers’ hands and bring the industry together to build a system that works for the 21st century dairy farmer.”
The measure has been referred for consideration to the U.S. Senate Agriculture, Nutrition, and Forestry Committee.