On Thurs., July 19 at 11:30am, Wisconsin Farmers Union will hold an educational webinar sharing ways several dairy cooperatives are adopting base/excess plans to prevent taking more milk from producers than they have the capacity to process or market.
A base/excess plan, often referred to as two-tiered pricing, works by determining each co-op member’s level of milk production, based on their historic average. The farmer is paid for milk produced up to their base, but any excess milk receives no compensation. WFU says more cooperatives should consider this option as a way to discourage rapid dairy expansions that drive milk prices down.
“While these internal programs alone will not bring up farmers’ milk price, they reduce the financial incentive to overproduce milk,” said Wisconsin Farmers Union Government Relations Associate Bobbi Wilson. “They also cut costs incurred by having to haul or even dump excess milk.”