Monday, June 24, 2013

Pennsylvania Milk Marketing Board Adjusts Over-Order Premium

On June 19, 2013, the Pennsylvania Milk Marketing Board issued two orders which become effective July 1, 2013 and end December 31, 2013. Order No. A-983 decreases the over-order premium from $1.85 to $1.60 per hundredweight. The Board decided to decrease the over-order premium because the mandated Class I premium was negatively affecting in-state processor’s in-state sales. Order No. A-982 will decrease the fuel adjuster add-on which was previously set at $0.83. The Board concluded the current add-on no longer reflected current market conditions and ordered the add-on be set at a minimum of $0.25 per hundredweight. The add-one will be adjusted based on a bracket system and for every $0.10 change in the on-highway price of fuel the add-on will be adjusted by $0.02 per hundredweight. The Board ordered the base of the bracket be set at $4.073.

For more information, please see the Milk Marketing Board’s Press Release.

Written By Clara E. Conklin – Research Assistant
The Agricultural Law Resource and Reference Center
June 24, 2013

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