NFU Urges Dairy Price Investigation

For Immediate Release: April 13, 2007

Contact: Liz Friedlander, 202-314-3191

WASHINGTON (April 13, 2007) – National Farmers Union requested USDA Inspector General Phyllis K. Fong conduct an investigation into potential misreporting practices of non-fat dry milk (NFDM). In a letter to Inspector Fong, NFU President Tom Buis said the prices reported by the National Agriculture Statistics Service (NASS) have consistently been below actual prices in the marketplace, resulting in lower prices for dairy producers.

“I urge your office to immediately investigate potential misreporting and review milk pricing programs to ensure all dairy prices are accurately and fairly reported,” Buis said in the letter.

NASS has been reporting NFDM prices below the market price for nearly eight months. Buis said that this is very troubling because USDA uses NASS data to calculate prices for dairy commodities. Farmers, therefore, receive less than the fair market value for their milk. Today, USDA’s Agriculture Marketing Service revised the NASS weekly NFDM survey prices for the three final weeks of March 2007, a signal the department recognizes a problem exists.

“Since this misreporting began, dairy farmers have lost hundreds of millions of dollars,” Buis said. “America’s dairy producers should not be held economically liable for the department’s improper administration of its programs.”

National Farmers Union is urging USDA to take action and immediately review price reporting procedures and milk pricing programs and, if dairy prices have been understated, work to ensure that dairy farmers are compensated for lost revenue.