2011 NEW ENGLAND FARMER PAY PRICE
(VERMONT-MAINE-NEW HAMPSHIRE-RHODE ISLAND-CONNECTICUT-MASSACHUSETTS)
PAY PRICE PRINCIPLE:
Our foundation tenets, rooted in collective bargaining, have always been supply management and a sustainable price for our producers. The organic premium (which is not tied to the conventional marketplace) has varied from $1.50-$11.00/cwt over our 23 year history. The Cooperative makes all efforts to meet the established budget base price; however, the price can be adjusted by the Board of Directors.
Base Component Price: $28.05/cwt.
($22.00 plus $5.55 regional premium, $.50 Market Adjustment Premium)
Based on component levels of 3.5% Butterfat; 3.05% Protein; 5.65% Other Solids
COMPONENT PRICING:
CROPP will use a pay price program based on product utilization. The component prices would be as follows for $21.82:
Butterfat | $2.05 per pound |
Protein | $1.86 per pound |
Other Solids | $1.65 per pound |
NEW ENGLAND PREMIUM:
In addition to above component pricing, a premium of $5.55 per cwt, will be paid to Vermont, Maine, New Hampshire, Rhode Island, Connecticut and Massachusetts farmers as a regional premium.
MARKET ADJUSTMENT PREMIUM:
The Cooperative works hard to achieve a sustainable stable pay program for farmers and is wary of Market Adjustment Premiums (M.A.P.). M.A.P. payments are payments above the standard pay program. For the balance of 2011, the MAP premium for New England is $.50/cwt.
CROPP Quality Program
SOMATIC CELL ADJUSTER:
- FMMA type formula yields $.48 cents per 100,000 on a linear premium basis. The hinge point is 350,000. The deduction formula is $.48 per 100,000 over 350,000 on a linear basis. Maximum deduct level is at a cell count of 1,000,000. As an example, a somatic cell count of 250,000 would result in a $.48/cwt premium, while a somatic cell count of 450,000 would result in a $.48/cwt deduct.
STANDARD PLATE COUNT:
- CROPP has a premium/deduct program for Standard Plate Count (SPC).
- To receive the premium the milk must pass standards for cryoscope testing and show no inhibitors.
SPC Quality Payment Chart | ||
|
|
|
SPC X 1000 |
|
|
1-10 | $0.25 | Premium |
11-20 | $0.10 | Premium |
21-30 | $0.00 |
|
31-100 | ($0.10) | Deduct |
100+ | ($0.25) | Deduct |
PRELIMINARY INCUBATION COUNT:
- CROPP has a premium/deduct program for Preliminary Incubation Count (PI).
PI Quality Payment Chart | ||
|
|
|
PI X 1000 |
|
|
0-15 | $0.50 | Premium |
16-30 | $0.25 | Premium |
31-50 | $0.00 |
|
51-100 | ($0.25) | Deduct |
101-200 | ($0.50) | Deduct |
201-750 | ($1.00) | Deduct |
750+ | ($2.00) | Deduct |
LAB PASTEURIZATION COUNT:
- CROPP has a premium/deduct program for Lab Pasteurization Count (LPC).
LPC Payment Chart | ||
|
|
|
0-50 | $0.50 | Premium |
51-100 | $0.25 | Premium |
101-250 | $0.00 |
|
251-300 | ($0.75) | Deduct |
301+ | ($1.00) | Deduct |
HAULING:
There will be a $180.00 stop charge per month for CROPP producers.
SEASONAL PAY PRICE VARIABILITY
The Cooperative's pay price plan incorporates a scheduled seasonal pay price variation to provide an incentive for level production, as determined by Dairy Executive Committee policy:
- A $1.00/cwt deduct will be applied for the months of May, June and July to offset the financial burden of spring flush utilization, transportation and inventory allowance..
- A $3.00/cwt increase for all milk that is received in January, February and December 2011.
DAIRY POOL CAPITAL BASE PLAN
To meet the requirements of the Dairy Pool Capital Base Plan, CROPP farmers are required to purchase preferred stock equivalent to 5.5% of their annual base gross income. Calculation of this is based on:
- the pay program of the Member's region,
- the individual Member's components
- the Member's established production base.
Please see our Equity handout to learn details of options for fulfilling this requirement.
If you have any questions please call Member Services at 1-888-809-9297
