They were developed in a multi-state task force that Edge established and through research, discussions with member farmers throughout our region, and engagement with processors and other stakeholders.

Some principles are currently being implemented ― but only if milk is pooled inside the federal orders. With more and more milk de-pooling, there is a need for additional guardrails outside the FMMOs. Unfortunately, USDA cannot implement these changes under the current legislation, even in a hearing process. Unlike modifying Class I mover or make allowances, additional legislation must be enacted to adopt this proposal.

This proposal is good for dairy farmers, processors and consumers. It protects farmers with common sense contracting principles, including written contracts, termination notice, etc. It creates a stronger supplier base for processors, while also offering protections for them. Finally, it creates a stronger, more resilient dairy supply chain for consumers.

Federal Order 30, which covers MN and WI and parts of SD, ND, IL, IA and MI, has experienced a concerning trend over the last decade, with producer price differentials becoming lower and lower. If this trend continues, the incentive to pool milk disappears, and the order becomes irrelevant. With no federal order in place, farmers lose a great deal of protections and market data helpful for risk management.