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Task force members say milk buyers & sellers should be aware of contract details

A dairy economist says it might be helpful for dairy farmers and milk buyers to have a clear understanding of their milk purchase agreements.

Mark Stephenson with the University of Wisconsin told the Wisconsin Dairy Task Force marketing subcommittee it might help if producers and milk buyers make sure they have a current or active contract that specifies the terms of termination from either side.  “That was one of the things that really surprised me a bit, I guess, when we had the problem at how very few dairy producers in this state do actually have any kind of termination agreement or contract.”

Stephenson says many farmers have automatically-renewed milk agreements and might not know enough of the details.  Although the Dairy Task Force sub-committee is not making a formal recommendation on this, they said it might be helpful if producers received an annual reminder outlining the rights and responsibilities of the buyer and seller, especially for termination of the contract.