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Bill > H0475


VT H0475

VT H0475
An act relating to establishing an equitable pricing system for the milk production


summary

Introduced
03/14/2025
In Committee
03/14/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

This bill proposes to implement measures to revitalize the Vermont dairy industry. The bill would establish a tiered system to set an equitable minimum price that milk handlers shall pay to milk producers for milk processed and manufactured within the State. The tiered pricing shall be based on milk producers’ cost of production, including the costs of environmental compliance unique to Vermont milk producers. If market pricing under the Federal Milk Market Order 1 does not sufficiently cover the costs of production, the bill would require an over order price enhancement to be paid to Vermont milk producers. To ensure that the tiered pricing does not generate incentives to over produce, the bill would establish production tiers for small, medium, and large farms. In addition, to fund the tiered pricing system and the over order enhancements, a per gallon handling fee would be assessed on packaged milk sold in the State. The amount of the handling fee would be adjusted based on the market price paid to milk H.475 producers per hundredweight of milk. The handling fee would be paid into the General Fund for annual appropriation. The bill would require the Agency of Agriculture, Food and Markets’ annual budget request to include a request for funding to implement the tiered pricing and over order price enhancements.

AI Summary

This bill aims to support Vermont's dairy industry by creating a new, more equitable pricing system for milk producers. The proposed legislation would establish a tiered pricing structure that sets minimum prices for milk handlers based on producers' costs of production, including unique environmental compliance expenses. If standard market pricing (under Federal Milk Market Order 1) does not adequately cover production costs, the bill would require additional over-order price enhancements for Vermont milk producers. To prevent overproduction, the bill would create distinct production tiers for small, medium, and large farms. To fund this new pricing system, the bill would implement a per-gallon handling fee on packaged milk sold in Vermont, with the fee amount adjusted based on current market prices. The collected fees would be deposited into the General Fund and made available for annual appropriation. Additionally, the bill would require the Agency of Agriculture, Food and Markets to include funding requests for implementing the tiered pricing and price enhancement system in its annual budget request, demonstrating a comprehensive approach to supporting the state's dairy industry.

Committee Categories

Agriculture and Natural Resources

Sponsors (1)

Last Action

House Committee on Agriculture, Food Resiliency, and Forestry Hearing (00:00:00 4/2/2025 ) (on 04/02/2025)

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