California milk quota proposal nears finish line

California dairy farmers are eager to abandon the state’s milk marketing order and join the federal marketing order system, hoping to increase the price they receive for their milk. They have, however, been adamant that loss of the state’s quota program would be a deal breaker.That program pays quota certificate holders $1.70 per hundredweight above the state blend price for the amount of milk covered by their certificate. Those certificates are together worth $1.2 billion, and are an asset that can be transferred or sold.USDA would allow the quota program to continue in the proposed federal order as a stand-alone program run by the California Department of Food and Agriculture. And a producer review board established by CDFA has been at work figuring out how the program would operate.The main issue was what milk would be assessed and how the assessment would be collected. Under the state order nearly all milk is pooled and CDFA deducts $12 million to $13 million a month from the pool to fund the quota program. Under a federal order, however, only Class I fluid milk is require to be pooled, and milk for other uses can move in and out of the pool.