USDA issued a notice extending the Dairy Forward Pricing Program to
allow producers and cooperative associations to enter into forward price
contracts under the program through Sept. 30, 2013.
The notice, which became effective on Feb. 1, 2013, also extends all other
program requirements outlined in the program’s Oct. 31, 2008, Final Rule until
Sept. 30, 2013.
The Dairy Forward Pricing Program allows producers and producer cooperative
associations to voluntarily enter into forward price contracts with handlers
for milk under the Agricultural Marketing Agreement Act of 1937. The 2008 Farm
Bill initially prohibited new forward contracts from being entered into after
Sept. 30, 2012, and allowed no forward contracts to extend beyond Sept. 30,
2015.
The passage of the American Taxpayer Relief Act of 2012, signed into law on
Jan. 2, 2013, revised the program to allow new contracts to be entered into
until Sept. 30, 2013. Any forward contracts entered into until the deadline on
Sept. 30, 2013, are still subject to the Sept. 30, 2015, cutoff date.
All new contracts must be signed by both parties prior to the effective month,
and received by the federal order market administrator prior to the 15th of the
applicable month. For example, to contract March 2013 milk, the forward
contract and disclosure must be signed prior to March 1 and received by the
market administrator by March 15.
Producer milk that has been forward contracted under the terms of the program
is not subject to federal order minimum pricing provisions.
The notice was scheduled to be published in the Feb. 1, 2013, Federal Register.
For more information about the decision contact: Roger Cryan, Director,
Economics Division, USDA/AMS/Dairy Programs, Stop 0229-Room 2753-S, 1400
Independence Avenue, S.W., Washington, DC 20250 0231, phone: 202-720 7091; or
email: [email protected].