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Pennsylvania Ups Over-order Milk Premiums

Pennsylvania Ups Over-order Milk Premiums
Class I milk gets a 50-cent jump for November and December.

This week, Pennsylvania's Milk Marketing Board voted to increase the Class I over-order premium price for milk by 50 cents per hundredweight to $2.65 for November and December. That's good news for Keystone State dairy farmers shipping milk to in-state fluid processors.

The PMMB decision also keeps in place a fuel adjuster premium. "The board recognized that quick action was needed to be taken to account for the extended period of low milk prices," comments Pennsylvania Farm Bureau President Carl Shaffer. "The additional revenue could help farmers pay some bills and stay afloat in the hope that milk prices will recover in 2010," he adds.

The over-order premiums affect milk produced, processed and sold in Pennsylvania for Class I (fluid milk) use. The $2.65 premium adds only 23 cents to the retail cost of a gallon of milk.

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