PA Farm Bureau: PMMB Maintains Current Dairy Price
HARRISBURG — Pennsylvania Farm Bureau (PFB) supports Wednesday's decision by the Pennsylvania Milk Marketing Board (PMMB) to keep the Class I over-order premium price of milk at $2.15 per hundredweight for the six-month period beginning January 1, 2009.

“We believe the board recognized the existing pressures faced by dairy farmers across the Commonwealth in making its decision and also took into account the projections that milk prices will continue to fall next year,” said PFB President Carl T. Shaffer.

During testimony earlier this month, PFB said the continuation of the current price was needed to combat high production costs and declining milk prices.

“Farmers across Pennsylvania are facing difficult times and tough decisions as the cost to produce milk remains at historically high levels, while the revenue farmers receive for their milk is expected to drop throughout 2009,” said PFB Vice President Richard Ebert, who is a Westmoreland County dairy farmer and chairman of PFB’s Dairy Committee.

Farm Bureau noted that feed costs, which account for half of a dairy farmer’s production costs, are putting a major strain on milk producers.

“Since 2007, my feed costs have risen 44%. In addition, when I look at the 14 areas of production costs on my farm over the past 21 months, nine areas increased by more than 30%, while four other areas increased by more than 100%,” added Ebert.

Farm Bureau also recognized the PMMB for keeping in place its current premium price add-on for fuel costs. Dairy farmers whose milk is produced, processed and sold in Pennsylvania for Class I use receive an additional premium based on the cost of fuel.

Pennsylvania Farm Bureau is the state’s largest farm organization with a volunteer membership of more than 44,000 farm and rural families, representing farms of every size and commodity across Pennsylvania.

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POSTED 081220_0900 ET