The Pennsylvania Milk Marketing Board has acted on a request from the Pennsylvania Farm Bureau to maintain its current over-order premium price for Class I milk. The board agreed to keep the price at $2.15 per hundredweight for the six months beginning July 1. In addition, the board will keep its current premium price add on for fuel costs in place.

Farm Bureau President Carl Shaffer says improved milk prices this year are bringing some relief to dairy farmers, who are using any net profits to pay down debt accumulated during 2009, a devastating year for most milk producers.

The Bureau asked the board earlier this month to maintain the price levels, citing the volatility of milk prices over the past three years along with consistently higher fuel, seed, fertilizer and feed costs. Dairy farmers are also concerned about the rain this spring, fearing delays in planting could affect the yield of feed crops. Pennsylvania had its wettest spring on record this year. A lower yield could force dairy farmers to buy additional feed from other sources, further increasing their costs.

Dairy farmers whose milk is produced, processed and sold in Pennsylvania for Class I fluid milk  receive the over-order premium and the premium add on based on the price of fuel.

Consumer should see no change in milk prices as a result of the action.

June is National Dairy Month.  According to the Farm Bureau,   the dairy industry produces over 40 percent of the Commonwealth’s agricultural receipts.