Milk Price Support Program Changes Announced

Chuck ZimmermanGovernment

Farm Service AgencyUSDA’s Commodity Credit Corporation announced today the issuance of a newly revised contract for purchasing bulk dairy commodities under the Milk Price Support Program. Bulk dairy products include salted butter, block cheddar cheese, American cheese packed in barrels and nonfat dry milk.

In its efforts to update program requirements, USDA’s Farm Service Agency (FSA) held meetings with dairy
industry associations, representatives, trade groups and government agencies to obtain input on this new contract and related procedures. As a result, CCC has been able to streamline purchasing specifications and develop requirements that more closely adhere to commercial practices. Some of the streamlining improvements include eliminating outdated packaging requirements; enhancing grading guidelines; allowing for use of electronic
transmission of data for upcoming purchase requests; updating references to FSA’s Web site and generally making the contract more user-friendly and reflective of current industry practices.