forward contract milk
Beginning Dairy Farmer seeking help in learning how forward contract milk. I have some basic knowledge but haven't done anything since college 10 years ago.
Thank You for any information
Huron County Michigan
You might want to look at the web site below. It explains much of the questions you might have. I am not advocating DFA but just using the web site as a resource.
You can forward cash contract milk with most any dairy marketing cooperative. However if your milk were to go to a private company located in a federal milk marketing order (FMMO), they are not able to offer cash forward contracting now. You may contract at a milk price below what the actual milk price turns out to be. Private dairy processors are required to pay at least the minimum prices that are calculated by the FMMO. A coop is thought to be owned by the members and thus they are paying themselves.
Thank you for your response, it was a great help.