Consumers:

If farms that bottle their own milk are faced to pay into the federal pool, the most likely result will be that (1) the increased expenses will be passed on to consumers or (2) these producer-handlers will reduce the size of their operations or go out of business. Either way, the higher costs and reduced competition will be felt by consumers of milk at the store checkout. Those families who now choose to buy their milk from producer-handler farms will also lose their preferred choice of milk supplier. In some cases, this means the loss of a supplier of rBST-free milk or home delivery.

Producer-Handlers:

Today, there are 90% fewer farm-to-glass dairy operations in the United States than there were in the 1960's. Those that are still around have survived, in many cases, by growing to keep up with dairy farms and milk plants that have also grown and consolidated. This decision would limit the growth of producer-handlers to a fraction of the size of most milk plants. And size is important-of the last ten producer-handlers to go out of business in the Pacific Northwest, nine have been smaller than the proposed USDA cap. Meanwhile, competing plants and dairy farms are free to grow unabated. The four producer-handler farms affected by USDA's proposed rule are family-owned operations. Some are in the third and fourth generation of family members working on the farm or in the plant. This decision could spell the end of these family farm businesses.

Independent Distributors:

Many producer-handler operations sell some of their milk to independent businesses who then supply small convenience stores, coffee shops, and residences. These men and women depend on producer-handlers for a supply of fresh milk products to sell their customers. Without producer-handlers, these distributors will have to sell higher-cost products that, in many cases, they believe has inferior taste and quality compared to the milk supplied by producer-handlers.

Employees:

While the producer-handler operations affected are family-owned, they rely on dedicated employees to help in milking cows, planting and harvesting crops, trucking raw milk, bottling finished milk, and delivering milk to stores. There are literally hundreds of families who directly and indirectly owe their jobs to producer-handlers.

Communities:

Producer-handlers are good citizens who contribute to the quality of life in the areas where they are located. In addition to the positive impact on the community tax-base, producer-handlers contribute time, money, and products to worthy local charities, community events, and those in need. Producer-handlers are proud of their communities, and the money spent locally stays local. Tens of thousands of dollars each year are contributed to making local communities a better place to live.

Other Dairy Farmers:

The dairy farmer in the United States has two real choices of what to do with his or her milk. The milk can be sold to a cooperative or it can be handled by the farmer. For many farmers, belonging to a cooperative is a great choice. A well-managed cooperative is an asset to its member-owners, and frees the dairy farmer from the trouble of finding a buyer for his or her raw milk.

When a farmer wants the challenge of marketing a better product or a different product to the public or when a cooperative fails to serve its members effectively, then the dairy producer must have a real alternative to co-op membership. Being a producer-handler is that alternative.

This decision, backed by large cooperatives and processors, limits the viability of the producer-handler option. While the dairy farmer who is not a producer-handler might benefit by a slight increase in his or her milk check as a result of this decision (about 0.2%), they have traded away their freedom of choice.