HARRISBURG, Pa. — Pennsylvania Farm Bureau asked the Pennsylvania Milk Marketing Board to keep the Class I over-order premium price for milk at $1.60 per hundredweight and to maintain the current fuel adjuster of $0.25 per hundredweight for the six-month period beginning April 1.
During testimony before the PMMB, Farm Bureau noted that it is no secret that dairy farmers are facing extremely difficult conditions on the farm due to depressed milk prices in 2015 and 2016.
“One of the biggest challenges facing dairy farmers is that it takes a long time for their businesses to recover from extended periods of low milk prices,” said Somerset County dairy farmer Glenn Stoltzfus, who is a member of PFB’s State Board of Directors and chairman of its state Dairy Committee. “The over-order premium helps provide some needed relief from depressed milk prices.”
Stoltzfus, who operates Pennwood Farms in partnership with three of his brothers, said PFB’s decision to recommend a continuation of the over-order premium was not made lightly, but it is appropriate based on conditions on dairy farms across the state.
“We understand the milk supply challenges facing the Northeast and ask the board to make a decision that balances the critical price needs of dairy farmers with the difficult marketing conditions in the Northeast,” Stoltzfus said.
The over-order premium and the fuel adjuster add-on mandated by PMMB are assessed on Class I (fluid) milk that is produced, processed and sold entirely within Pennsylvania.
About Pennsylvania Farm Bureau
Pennsylvania Farm Bureau is the state’s largest farm organization with a volunteer membership of nearly 62,000 farm and rural families, representing farms of every size and commodity across Pennsylvania.