Amended CWT Plan Approved
CWT will use the proceeds from contributions by participating dairy producers to implement a multi-dimensional program to reduce milk supplies by 1.2 billion pounds over a 12-month period.
The money raised by the program -an estimated $60 million in the coming 12 months-will be apportioned among three supply reduction programs to maximize the program's effectiveness.
The three include a dairy product export assistance program, a herd retirement program, and a milk production reduction program.
"We've revised the CWT concept, lowering the assessment to a nickel, to encourage as many farmers to participate as possible," said Jerry Kozak NMPF's president and CEO. "CWT's goal is to achieve an average 400% net return on investment for farmers," he added. The program's activities are targeting an average increase in the all milk price of 36 cents per cwt., which would result in a net return of 23 cents per cwt., when factoring in the cost of the assessment and lower government Milk Income Loss Contract (MILC) payments.