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Small farms benefit from new price proposal

A new proposal aimed at helping small to mid-size dairy farms could mean an extra $40,000 in the pocket of Thunderstruck Holsteins owner Greg Letter. According to a proposal from the National Farmers Organization, a two-tier milk pricing system would be established to pay farmers an extra four dollars per hundredweight of milk they produce a month up to 1,000,000 pounds. Farmers would make a lower amount per hundredweight if they exceed that amount. The proposed program could help farmers like Letter, who milks about 70 cows and produces just over 1,000,000 pounds a year. He would like to see the program narrowed down even further to help save family farms across the state.

The federal government would have to approve any price adjustments before the proposed idea can be implemented. Class III Milk price futures currently stand at approximately $15 to $16 per hundredweight over the next nine months.

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