The Dairy Forward Pricing Program, which allows dairy producers to forward contract Class II, III and IV milk with proprietary handlers, has been extended through Sept. 30, 2013.
The program had expired on September 30, 2012, but the passage of the American Taxpayer Relief Act (ATRA) of 2012 extended it one year. The ATRA was signed into law January 2, 2013.
"Handlers may now enter new forward price contracts with producers or cooperative associations of producers through September 30, 2013," says Virgil Swenson, Acting Market Administrator for the Central Federal Milk Marketing Order No. 32 in Kansas City. "Forward contracts established under this program may not extend past Sept. 30, 2015."
Key to the program is that producer milk under such contracts is not subject to Federal Order minimum pricing provisions. But all contracts must be signed by both parties prior to the effective start month of the contract, and the contract and disclosure statement must be received by the Market Administrator prior to the 15th day of the applicable month.
"For example, to contract for March 2013 milk, the forward contract and disclosure statement must be signed prior to March 1, 2013, and received by the Market Administrator by March 15, 2013," says Swenson.
Read the Federal Register notice here.