Limit Dairy Hauling Surcharges

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Why it matters

1. 1

   Protects farmers from arbitrary or excessive hauling fees. By requiring state approval for surcharges, the bill helps ensure that dairy transporters cannot impose unexpected or unjustified extra costs on individual farmers, co-ops, or associations, which can be particularly important for small or struggling operations.

2. 2

   Links surcharges directly to actual cost increases. Only surcharges that are the result of real, industry-wide cost spikes—such as fuel price surges or other unforeseen expenses—can be approved. This prevents transporters from using surcharges as a way to increase profits at the expense of producers.

3. 3

   Adds state oversight and transparency. By putting surcharge approval in the hands of the Department of Agriculture and Markets, the legislation introduces a layer of accountability, likely leading to more transparent and fair pricing practices within the dairy supply chain.

4. 4

   Could help stabilize milk prices for consumers. By limiting unnecessary cost increases on farmers, the bill may indirectly help keep downstream milk and dairy prices more stable for consumers, since unchecked hauling fees can eventually get passed along the supply chain.

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