Sodbuster87: What they are talking about is where Praire Farms is limiting you to only getting paid full rate on the average pounds (base quota) you produced last year. For the pounds you want to sell above that they only pay a greatly reduced rate. So what the fellow is offering for sale is HIS pounds/quota so you could sell more pounds than you did last year and still get paid the full rate.
So an example would be: Current Grade A April milk price is $14.10 per hundred. So if your quota was 180,000 lbs. per month but you actually shipped 200,000lbs. You would get 180,000/100 x $14.10=$25380 then the overage would be 20,000/100 x $10.00= $2000 rather than $2810.
The $14.10 is the milk piece for April. The last I heard was the over quota milk was bringing $10.
The trouble is demand is flat to down, but guys are increasing their production like there is no limit to what can be marketed. Until now the dairies could absorb the excess production but not now.
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