Dairy farmers producing for Dean Foods did not receive payment for the milk produced in April. In response, Farm Bureau urged the Dean Foods estate and its lenders to prioritize immediate payments to these producers for milk shipped and pooled in April.
On May 12, 2020, Dean Foods, DIP (debtor-in-possession), did not pay its obligation to the Federal Milk Marketing Order Producer Settlement Fund (PSF) as required by Federal Milk Marketing Order regulations and subsequently did not make the final payment due to milk producers for milk shipped and pooled in April. The remaining balance due for milk purchased from dairy farmers and/or their cooperatives during April exceeds $100 million, according to American Farm Bureau Federation (AFBF) estimates.
To help dairy farm families from defaulting on their own financial obligations, AFBF has urged the Dean Foods estate and its lenders to prioritize immediate payments to these producers. Thankfully on June 8, independent producers reported that they received payment for the month of April.
The letter from Farm Bureau to the Dean Foods estate et al. can be found by clicking here.