Forward contracting bill introduced

USA – A bill has been put forward that would put into legislation dairy forward contracting for milk pricing.

The bill is based on a pilot programme that expires at the end of this year, which is designed to provide both buyers and sellers with the ability to get stable, reliable milk prices. Without the programme, only milk co-operatives can offer forward contracts to members.

“Today’s dairy producer is a businessperson who deals with a number of variables, the most frustrating of which is the ever-changing milk price,” said Idaho Dairymen’s Association’s executive director Bob Naerebout. “Forward contracting helps secure stable milk prices for milk and we want to be able to continue using this tool.”