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A36-Lmcaster Farming, Saturday, March 4, 2000
USD A Proposes To Implement
Forward Contracting
WASHINGTON (USDA)
Under a new pilot program
mandated by Congress, dairy
farmers marketing their milk
under Federal milk marketing
orders (FMMO) will be able to
enter into forward pricing con
tracts with proprietary handlers
who purchase their milk.
Forward contracting is volun
tary for both dairy farmers and
milk handlers. All other Federal
milk order regulations are un
changed. The pilot program ex
pires after Dec. 31,2004.
As provided in the legislation,
the pilot program will only
apply to federally regulated
milk used for manufactured
dairy products. Fluid milk
(Class I) is not eligible for for
ward contracting under the pilot
program.
Under the proposed rule for
the pilot program, a handler will
be able to enter into forward
contracts with dairy farmers
and cooperative associations for
any milk receipts that do not
exceed the handler’s manufac
turing uses of milk for the
month.
Manufacturing uses include
milk used for cream products,
yogurt, dry milk, butter, and all
types of cheeses. For the volume
of milk covered by forward con
tracts, a handler is exempt from
paying minimum Federal order
price(s) to producers and coop
erative associations. Instead,
prices as agreed to in the for
ward contract will be paid.
Handlers participating in the
pilot program are still subject to
all other provisions of an order
and must still keep records and
submit reports now required
under the FMMO program.
Handlers must make avail
able to the market administrator
such records as are determined
necessary to verify and establish
the handler’s obligations under
the order. Handlers also will be
required to submit to the market
administrator a copy of the for
ward contract with each pro
ducer or cooperative, as well as a
disclosure statement signed by
the producer or cooperative as
sociation.
A signed disclosure statement
verifies that a producer received
a USDA Fact Sheet that de
scribes the nature of the pilot
program and risks involved. The
Fact Sheet also provides useful
guidelines and tips that produc
ers should consider in deciding
whether to enter into a forward
contract.
The Fact Sheet is available
from any market administrator,
Tour Pa. ’s Pro fessional
Horse Farms
(Continued from Page A 33)
• Windy Ridge Farm/Outlaw Stables, RR 5
Box 595, Newport, PA 17074. (717) 444-2555.
Thoroughbreds, Clydesdales, Thoroughdales,
ponies, hunter/ jumper, equitation. Trail
rides, lessons, wagon rides, training, lessons.
York Area
• Lauxmont Farms Equestrian Center,
1215 Long Level Rd., Wrightsville, PA 17368.
(717) 252-9870. Boarding, hunt seat, dres
sage, and equitation lessons, training, breed
thoroughbreds.
• Lost & Found Horse Rescue, 852 Valley
Rd., York, PA 17403. (717) 428-9701. Emer
gency stabling, rehabilitation and adoption
services for abused, neglected, and discarded
or can be downloaded from
AMS’ web site, at:
www.ams.usda.gov/dairy. Ques
tions and answers related to the
pilot program also are available
on the web site, or from market
administrator offices (listed
below).
The proposed rule also will re
quire that every forward con
tract under the pilot program
contain a clause that gives the
producer the opportunity to
change his or her mind within
three days of signing the con
tract. Forward contracts that do
not contain this 3-day right to
rescind clause will not be consid
ered valid contracts for purposes
of this pilot program.
The proposed rule also will re
quire that first-time contracts
not be written for more than six
months, and that no contract
may extend beyond Dec. 31,
2004. These provisions are in
tended to help producers
become familiar with a new
method for pricing their milk
and managing risk.
The proposed rule for the
pilot program will be published
in the March 1, 2000 Federal
Register.
Comments should be submit
ted no later than March 16.
Comments should be submitted
to Nicholas Memoli, Order For
mulation Branch, Dairy Pro
grams, USDA/AMS, Rm 2971
South Building, P.O. Box 96456,
Washington DC 20090-6456.
Comments may also be sent by
fax to (202) 690-0552 or by e
mail to mcholas.memoli@usda
.gov.
Information is available from
market administrator offices:
Northeast: Erik F. Rasmussen
USDA/AMS/Dairy Programs
‘P.O. Box 1478 (FT Point Sta
tion), Boston, MA. 02205-1478
Tel. (617) 542-8966; email: Eri
k.Rassmussen@USDA.GOV
Appalachian: Arnold M.
Stallings USDA/AMS/Dairy
Programs P.O. Box 18030,
Louisville, KY. 40261-0030 Tel.
(502) 499-0040; email: Amold
.Stallings@USDA.GOV
Florida and Southeast: Sue. L.
Mosley USDA/AMS/Dairy Pro-
grams P.O. Box 1208, Norcross,
GA. 30091-1208 Tel. (770) 448-
1194; email: Sue.MosIey@US
DA.GOV
Mideast; Marvin A. Baumer
USDA/AMS/Dairy Programs
P.O. Box 30128, Cleveland, OH.
44130-0128 Tel. (440) 826-3220;
email: Marvin.Baumer@USDA
.GOV
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