1. Introduction and Section I

The PA Milk Marketing Board is interested in understanding how you, as a dairy producer, feel about the federal milk pricing system and the state system that we regulate.  We also want to know your thoughts about various other aspects of our legislated responsibilities including the Over Order Premium. 

Please complete all of the survey questions; we have provided areas for comments on each of the subject areas for your use.  We are interested in what you have to say! 



Section I:  Federal and Pennsylvania Milk Pricing

For Questions #1-10, please indicate how AWARE you were of this information before taking this survey.

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* 1. The Federal Milk Marketing Order sets minimum producer milk prices on a monthly basis.  Pennsylvania contains only TWO Federal Milk Orders - #1 and #33 - the PA Milk Marketing Board has created six milk marketing areas in the state.

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* 2. The PA Milk Marketing Board uses Federal Order minimum prices each month to establish minimum prices for all producers in the six PA Milk Marketing Areas. If a producer is located in a Federal Order but ships to a dealer outside the Order he/she does not receive the Federal Order prices.

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* 3. Federal Order (and PA) Class I minimum producer milk prices are based on Class III or Class IV skim prices,  butterfat, and a Class I differential that considers miles from a reference point.

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* 4. Class II minimum milk prices are calculated using only Class IV skim milk prices plus a butterfat factor and an add on of 70 cents to help move milk to Class II consumption.

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* 5. Class III and Class IV milk prices are determined by wholesale commodity prices of four dairy products - Grade AA butter, 40 pound blocks and 500 pound barrels of cheese, nonfat dry milk, and dry whey.

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* 6. Federal orders employ a pricing system that assigns minimum prices that handlers/dealers pay for milk based on its end use.  This is known as marketwide pooling.

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* 7. Producer payments are equalized in a Federal Order by the marketwide pool.

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* 8. In individual handler/dealer pools, producers shipping to different handlers/dealers in the same market can receive different prices based on the utilization (Class I, Class II, Class III, Class IV).

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* 9. When producers' milk is not pooled within a Federal Order, the minimum prices are established by using skim and butterfat prices, published by the Board in its Producer Price Sheets and available online.

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* 10. PMMB uses Federal Order marketwide and individual handler/dealer pool information to establish PA minimum producer prices.

0 of 36 answered
 

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