Rep. Lawrence of Chester County looks at milk law remedy
By Sherry Bunting, reprinted from Jan. 20, 2012 Farmshine
EPHRATA, Pa. – The Pennsylvania Milk Marketing Law has been in existence since the 1930’s, setting a minimum retail price for all fluid packaged milk sold in the state. Cost recovery and profit margin for retailers and bottlers are built into the minimum price. Then in the 1980’s, the law was amended to give the Milk Marketing Board the authority to set an over-order premium for fluid milk produced, processed and retailed in Pennsylvania, which is intended strictly for the dairy farmers to cover increased costs of production.
For the past three years, that over-order premium -- paid by consumers and intended by law for the dairy farmers -- has been set at around 25 cents per gallon, and it includes a fuel adjuster.
But an estimated one-third of the amount paid by consumers at retail is “stranded,” meaning not all the funds are making their way back to farm milk checks, as evidenced by testimony at Senate hearings in 2009 and 2010.
Last year, Senator Mike Brubaker (R-16th), with 14 cosponsors, introduced Senate Bill 993 to amend the Milk Marketing Law in five specific ways, to shorten the chain between the consumer and the producer in terms of this state-mandated over-order premium. S.B. 993 has not yet been taken up by the Senate Agriculture Committee, chair by Sen. Elder Vogel, Jr. (R-47th).
In the House, State Representative John Lawrence -- a Chester County Republican representing Pennsylvania’s 13th district and serving on the House Agriculture Committee -- has been watching the progress of this issue and its impact on the dairy producers of the Commonwealth and his district.
Last week, three dairy farmer board members of the Dairy Policy Action Coalition (DPAC) -- Paul Horning of Stevens, Nelson Troutman of Richland and Rob Barley of Conestoga -- met to discuss the issue with Rep. Lawrence.
“I have been following it. I’m getting the background, and I spoke with some of the dairymen in my own district,” Lawrence stated, adding that he expects to start working on legislation for this spring on the House side to address dairy producers’ concerns about the equitable performance of the state’s Milk Marketing Law today.
Lawrence’s grandfather milked cows until 1978. He understands what is at stake for Pennsylvania’s economy and the importance of dairy to the Commonwealth’s number one industry: Agriculture.
"Dairy farms are important to our economy, and they produce a critical health food for our consumers," said Rep. Lawrence. "We want a local milk supply and a local food supply. It's a complex issue, but this is the time to address it. It's the right thing to do."
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