The National Milk Producers Federation has announced an emergency request of USDA on pricing.

The National Milk Producers Federation is asking the U.S. Department of Agriculture to hold an emergency hearing on a proposal to adjust the Federal Milk Marketing Order pricing formulas for Classes I and II. At issue is a proposal, sent Monday to the USDA, that would establish a direct relationship between dairy product prices and the Class I and II price. Because the cost of supplying Class I (fluid milk) and II (ice cream, yogurt) milk have risen, NMPF’s request would also add up to 73 cents per hundredweight to the prices that move, or support, Class I and II prices – resulting in higher for dairy farmers.

NMPF’s action comes at a time when the USDA is considering updating the pricing formulas for Class III and IV products. The USDA is expected to increase the manufacturing allowances for those formulas, which could result in lower farm-level milk prices in all four milk pricing classes. “Because the USDA has not accepted our argument that it should hold Class I and II prices harmless until they review all aspects of the make allowance pricing issue, we are now asking for a separate hearing to address our concerns,” said Jerry Kozak, President and CEO of NMPF. “America’s dairy producers will face substantial economic hardship if, as anticipated, USDA’s decision to increase Class III and IV make allowances results in reduced in Class I and Class II prices.”