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Pennsylvania Gov. Rendell Petitions Court To Overturn Milk Marketing Board Decision, Help Dairy Farmers

Posted on: Wednesday, 6 May 2009, 15:50 CDT

April 1 Decision Challenged in Commonwealth Court

HARRISBURG, Pa., May 6 /PRNewswire-USNewswire/ -- Saying the Pennsylvania Milk Marketing Board ignored the needs of Pennsylvania's dairy industry, Governor Edward G. Rendell said his administration is continuing its push to help the state's milk producers earn fair prices for their products.

Governor Rendell and Agriculture Secretary Dennis Wolff last week petitioned the Commonwealth Court to reverse the marketing board's April 1 order that blocks Pennsylvania's dairy farmers from collecting additional premiums from dealers selling milk in New Jersey.

The Milk Marketing Board is, among other responsibilities, charged with establishing milk prices based on industry conditions to ensure that Pennsylvania farmers are reasonably compensated.

"By ignoring a mountain of evidence, the Milk Marketing Board failed to do its most important job -- help more dairy farmers get a fair price for their milk," Governor Rendell said. "This petition to the Commonwealth Court is regrettably necessary to force the board to act in the best interests of our dairy producers."

The Governor's petition contends that the Milk Marketing Board abused its discretion and violated the law when it failed to follow its legislative mandate. The petition states that the board ignored its own data and the testimony of its own staff when it based its decision on benefits to milk dealers instead of milk producers.

Wolff said the Governor's proposal, if enacted by the Commonwealth Court, would help bring additional dollars back to the farm by opening the door for more premiums to be paid to Pennsylvania dairy producers, increasing their profitability and competitiveness in the market.

"Pennsylvania's dairy producers are struggling to stay in business and provide for their families in a time of record low milk prices and a depressed national economy," said Wolff. "Pennsylvania's dairy industry supports more than 40,000 jobs and is the number one economic driver in our agriculture industry, contributing more than $4 billion annually to our state. The Governor's petition will help ensure these farmers are appropriately compensated for their product and their hard work."

"In the current dairy market, any additional money that can be brought back to the farm is desperately needed," said Rod Hissong, a dairy farmer with Mercer Vu Farms in Franklin County. "With high input costs for fuel and feed, combined with low milk prices, every dairy farmer in Pennsylvania is asking how to find additional income, and the opportunity to collect premiums on milk sold in New Jersey would provide obvious benefits."

Milk produced, processed and sold within the state receives a premium above the current federal order milk price, but if milk is processed or retailed in another state, the producer does not receive the premium. Only 15 percent of the milk produced in Pennsylvania is subject to the premium under the current system.

Starting with a petition filed in August 2006, the Governor urged the marketing board to use its authority to require additional premium payments by milk dealers on Pennsylvania milk sold in other marketing areas where a premium was in effect. The board denied the petition, but agreed to entertain a petition seeking to capture premiums on Pennsylvania milk sold in neighboring states with over order premiums. On April 1, 2009, the board, in a two to one decision, also denied that petition.

Pennsylvania has made great strides in advancing the dairy industry during the past six years. The Department of Agriculture worked with state congressional members leading up to the 2008 Farm Bill to improve federal dairy policy. In 2004, the Governor initiated the Center for Dairy Excellence, which helps coordinate efforts of the dairy industry and its associated resources, positioning the industry to become stronger and more profitable. The center is guided by the Dairy Task Force, an advisory panel of dairy professionals from all segments of the industry.

For more information, visit www.agriculture.state.pa.us.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit www.governor.state.pa.us.

CONTACT: Chris L. Ryder (Ag) 717-787-5085 Michael Smith 717-783-1116

SOURCE Pennsylvania Office of the Governor

Source: PR Newswire

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