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USDA Extends Dairy Forward Pricing

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USDA's Agricultural Marketing Service published a final rule Friday to resume its Dairy Forward Pricing Program, as mandated by the 2014 farm bill, and extend it through 2018.

The Dairy Forward Pricing Program, which allows farmers to lock down forward price contracts with milk handlers, had expired along with much of the 2008 farm bill on Sept. 30.

"The program allows regulated handlers to pay farmers in accordance with the terms of a forward contract instead of paying the minimum federal order blend price for pooled milk," USDA's Agricultural Marketing Service explains on its website.

"The 2014 farm bill (H.R. 2642) was signed into law on Feb. 7, 2014, and extends the program to allow new contracts to be entered into until Sept. 30, 2018. Any forward contract entered into up and until the Sept. 30, 2018, deadline is subject to a September 30, 2021, expiration date to meet the terms of the contract," AMS clarifies in its final rule. See the rule here: http://1.usa.gov/1gruSE1

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