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View the History of the Minnesota Dairy Producers Board

View the Minnesota Statute Establishing the Board

(Click here for a printable version of the original statute)

History of the Minnesota Dairy Producers Board

June 1996 - March 1999

  1. Recommended that the easily manipulated Green Bay Cheese Exchange be replaced by a more reliable price recovery mechanism.
  2. Board's consumer representatives addresses the unfairness of rising milk prices for consumers and falling prices paid to farmers.
  3. Publicly commented on last year's price fixing of consumer prices and the bid rigging of school milk contacts last spring.
  4. Participated in the national milk price discussion to help farmers recover from the 1996 price crash, harsh winters, and high feed costs.  Includes items 4 through 9
  5. Recommended that all farmers, and not just class I producers, benefit from the $13.50 price floor that was proposed in Congress earlier in the year.
  6. Recommended that the U.S. Secretary of Agriculture use his emergency authority to enact a temporary price floor for farmers' milk prices at $14.50/cwt.
  7. Supporting California dairy farmers who want their processors in the Federal Orders and the "make allowance" discontinued in order to make milk pricing fairer nationally.
  8. Participating in the process to consolidate the Federal Milk Marketing Orders.  Supporting FUMMC's endorsement of the Cornell study that recommends 10 orders.
  9. Commended Minnesota Milk Producers' law suit against the class I differential as a big step toward creating a fairer pricing system for all farmers nationally.

    Recommending that a fairer premium pricing system replace the differentials, and that the Marketing Orders be maintained to ensure stable milk supplies and prices.
  10. Developing a manual to explain how farmers' milk is priced, so they can deal as independent businessmen on the market now that price supports are being phased out.
  11. Addressing Johne's Disease as a factor in depressing farm income through decreased milk production and increased culled cows.  Worked with the Minnesota Board of Animal Health for State legislated funding to help dairy farmers test their herds for the disease and to educate more farmers on it.
  12. Participating in the discussion over the Dairy Trade Practices Act.

    Conducted a news conference at an independent grocery store in Little Falls on the effects of alleged unfair Dairy Trade Practices on independent neighborhood and rural grocers and their dairy cases.  Recommended that the state attorney general continue the investigation of these practices by wholesalers and retailers after their refusal to participate in the Minnesota Agriculture Department's survey.
  13. Opposed USDA's recommendation to incorporate a "California-style" make allowance in the revised federal milk pricing system at a state capitol news conference and in letters to USDA and Minnesota's congressional delegation.
  14. Issued two Board newsletters in May and June 1998 to the state's dairy farmers on pricing policies and activities and the effects on them and consumers.
  15. Conducting public relations activities which included having a table at the last two Minnesota Senior Federal Annual Meetings, and the president speaking at various farm organization gatherings and in media interviews.
  16. Regularly having two different Board members attend each Minnesota Dairy Leaders Roundtable quarterly meeting.
  17. Often having representatives of farm and consumer organizations (other than Board members) attend and make presentations at the monthly board meetings.
  18. Currently part of the Ag Working Group to restore fairness in the distribution of volume premiums to dairy farmers at a legal working standard of $.30.cwt.  Helping to organize co-op members to get their local co-op boards to pass the $.30 resolution for recommendation to their respective processors to voluntarily set across the board.

    Other Ag Working Group members are Minnesota Farmers Union, Minnesota COACT, Land Stewardship Project, Farmers' Legal Action group, and Minnesota Senior Federation.

 

The Minnesota Statute Establishing the Board

Chapter Title: DEPARTMENT OF AGRICULTURE
Section: 17.76

Text:
 17.76 Minnesota dairy producers board.
 
    Subdivision 1. Establishment; composition; officers.
 (a) The Minnesota dairy producers board consists of 18 members.
 Fourteen of the members must be eligible family dairy
 producers.  Four of the members must represent food consumer
 groups.  For purposes of this section, "eligible family dairy
 producer" means a natural person who daily manages and operates
 a dairy farm owned by the person.  "Eligible family dairy
 producer" does not include a person who is currently an employee
 of or a member of the board of directors of an organization
 involved in milk processing or dairy marketing.
 
    (b) The board shall elect from among its members a chair
 and other appropriate officers.
 
    Subd. 2. Appointment; terms; compensation. (a) Two
 members of the board shall be appointed by each of seven
 organizations representing agriculture in Minnesota.  The
 organizations are:
 
    Minnesota Farmers Union;
 
    National Farmers Organization;
 
    Farmers Union Milk Marketing Cooperative;
 
    Minnesota Milk Producers;
 
    Sustainable Farming Association of Minnesota;
 
    Minnesota Farm Bureau; and
 
    Minnesota COACT.
 
    Two members of the board shall be appointed by each of two
 organizations representing consumers in Minnesota.  The
 organizations are:
 
    Minnesota Food Association; and
 
    Minnesota Senior Federation.
 
    To the extent practicable, the members must be selected to
 represent the broad diversity of Minnesota's dairy producers.
 
    (b) The terms and compensation of members and reimbursement
 for their expenses is governed by section 15.059.
 
    (c) The board expires on June 30, 2001.
 
    Subd. 3. Duties.

(a) The board may monitor economic aspects of the dairy production, processing, and marketing process including:
   (1) the movement of milk by processors;
   (2) price setting at the National Cheese Exchange in Chicago;
   (3) processor pricing methods;
   (4) producer checkoffs and the use of checkoff funds;
   (5) federal and state pricing policy; and
   (6) other activities that affect the farm gate price of raw milk.
(b) The board may regularly educate producers, processors, consumers, and policymakers about the reasons for inadequate raw milk prices.
(c) The board may conduct quarterly surveys of dairy producers to identify problems created by milk prices that do not provide a fair return on the investment of producers. The board may compile the information from these surveys and recommend solutions to producers.
(d) The board may determine dairy production costs in each county through periodic surveys and from local organizations of producers. 

HIST: 1996 c 407 s 13; 1997 c 216 s 25