Dairy industry would see changes under proposed bills

The size of the Nebraska Dairy Industry Development Board would be clarified under a bill heard before the Agriculture Committee Jan. 22.

Under current statute, membership on the board is proportional to the number of milk producers in the state. The formula in place designates one board member for every 40 milk production units.

LB70, introduced by Ogallala Sen. Ken Schilz, would maintain the formula and install a safeguard preventing a decrease in the board’s membership below its current level. If the formula results in less than seven members, the governor would appoint a member or members from nominees submitted by the board.

Schilz said the change was necessary to ensure best practices within the dairy industry.

“This is absolutely needed to make sure the board remains viable,” he said.

Nebraska Dairy Industry Development Board chairman Jim Eschliman testified in a neutral capacity. He said the bill would address a problem that is affecting the entire agricultural industry.

“The dairy industry is experiencing the same consolidation and loss of producers as other agricultural sectors,” he said. “As we lose producers, the number of members on the board will only continue to decline.”

No one testified in support or opposition to the bill.

The committee also heard LB67, introduced by Schilz, which would amend the Nebraska Milk Act by adopting the majority of the 2011 Grade A Pasteurized Milk Ordinance. Under the bill, new milk production facilities would be required to comply with all of the requirements of the ordinance. Existing facilities would be allowed to follow state statutory requirements for milk production which is not Grade A.

The committee took no immediate action on either bill.