Relief may be in store for dairy farmers-legislation would shift shipping costs to processors

[The Straight Story]

Relief may be in store for dairy farmers


Diary farmers struggling with low milk prices could see some financial relief if Congress passes legislation introduced Friday by U.S. representatives Michael Arcuri and Chris Lee that would shift shipping costs to processors.

Under the current system, dairy farmers must pay processors for all transportation costs incurred once their raw milk leaves the farm. Charges can come in the form of fuel surcharges, stop fees and hauling fees.

Jay Biba, a spokesman for Arcuri, D-NY, said central New York dairy farmers pay an average of 60 cents per hundred weight of milk in transportation costs on top of dealing with low milk prices and increasing production costs.

“This is an issue where everyone in the industry has to do something to make things more profitable for everyone,” Biba said. “In the long run, if there are less dairy farmers surviving then there is less business for the processors.”

While dairy farmers also struggle with high gas, feed and fertilizer prices, Biba said processors have been able to better weather the economic storm despite the decrease in milk prices.

http://www.auburnpub.com/articles/2009/11/21/latest_news/latestnews01.txt

[kestrel91316]

1. GOOD. It's about time dairy farmers caught a break. I am sick of

middlemen constantly skimming the cream (if you will forgive the pun) off every goddamned thing they do.

[customerserviceguy]

2. So the producers simply offer less money to the farmers

to make up the difference. That's pretty much how any cost-shifting laws work, right?