Posted: 03.18.2010

Dairy cooperatives are one step closer to some financial relief after a 15-0 vote yesterday in the Legislature’s Joint Finance Committee to approve Assembly Bill 748.  AB 748 would eliminate the requirement that dairy cooperatives and proprietary dairy plants participating in the state’s Agricultural Producer Security (APS) Program pay APS assessments for the upcoming dairy plant license year that begins May 1, 2010. 

“The current APS fund balance of over $10 million will allow for a one year ‘holiday’ for milk purchasers, thereby providing financial relief amounting to at least $500,000 for our dairy industry that has struggled with low prices for an extended period of time,”  said Bill Oemichen , Cooperative Network president and CEO. “Cooperatives and their members thank the Joint Finance Committee for this relief.”

More than $7 million of the $10-plus million APS balance was derived from the dairy industry.  The APS program helps protect producers in the event of a business default.  To date, only one default has occurred since the modern APS program was created in 2002, and the payment from the APS fund amounted to $130,000.

            AB 748 is authored by Rep. Amy Sue Vruwink (D-Milladore) and Rep. Ed Brooks (R-Reedsburg).  Senate lead supporters are Sen. Julie Lassa (D-Stevens Point) and Sen. Alan Lasee (R-DePere).  AB 748 already received an 11-0 vote of support from the Assembly Committee on Agriculture.  The legislation also enjoys the support of the Wisconsin Farm Bureau Federation, National Farmers Organization, Wisconsin Cheese Makers Association and Midwest Food Processors Association.

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