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Legislative counsel outlines H.475, a bill to add tiered "over‑order" milk pricing for Vermont producers
Summary
Legislative counsel Michael Grady told the Legislative Council that H.475 would authorize a tiered, state‑level over‑order premium to ensure Vermont milk producers receive a minimum price that reflects higher local production costs and environmental compliance.
Michael Grady, legislative counsel, told the Legislative Council he would “walk you through H 4 75 enact relating to establishing an equitable pricing system for production,” a bill that would add a tiered state over‑order premium for milk to address differences in producers’ costs in Vermont and other Northeast states.
The bill would authorize an equitable minimum price that milk handlers must pay producers for milk processed and manufactured in Vermont. Grady said pricing in Vermont and much of the Northeast is currently tied to Federal Milk Marketing Order No. 1, which “has a complicated formula” and can drive prices below producers’ cost of production. “One of the things that it doesn’t necessarily address is the cost of production,” he…
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