Rule Finalized to Bring Greater Transparency to Over-Order Premium

The Pennsylvania Milk Marketing Board has finalized a rule requiring dairy cooperatives to show on milk checks to producers the amount attributable to Pennsylvania’s over-order premium.

Pennsylvania Farm Bureau supports the change and offered comments in favor of the regulation when it was proposed in late 2019. The rule is scheduled to take effect starting Oct. 1, 2021.

The over-order premium mandated by PMMB is paid to Pennsylvania dairy farmers on Class I milk that is produced, processed and sold entirely within Pennsylvania.

In its 2019 comments supporting the rule, PFB said it would result in greater transparency and help producers better understand the over-order premium’s effect on milk pricing.

“A change in regulation to require Pennsylvania cooperative producers to receive similar information as producers directly shipping to licensed dealers will help a cooperative producer more clearly understand the value that the Board’s mandated premium provides to those producers supplying and marketing through their cooperative,” PFB wrote. “Transparency is always a good thing and it is especially true, given that some of our dairy farmers are currently receiving significant amounts of the PMMB over-order premium while others are not.”