California Ag Network

Tag: QIP

  • Unused Assessments Collected By The Dairy Marketing Branch Now Available To Fund Ca Dairy Industry-Focused Research

    The California Department of Food and Agriculture (Department) recently conducted a referendum among California Market Milk Producers to consider whether the Quota Implementation Plan (QIP) should be terminated. The deadline to vote in the referendum was September 10, 2025.

    On September 9, 2025, prior to the end of the voting period for the referendum, over 50 ballots were hand-delivered to the Department by a third party. Visual inspection upon receipt confirmed that the ballots had been removed from their sealed envelopes. Due to these unusual circumstances, the Department has decided to reissue the affected ballots and grant a special extension to vote to the producers whose ballots were received open. These new ballots are going out in the mail today; only properly completed and signed ballots, postmarked or otherwise received by the Department in a sealed envelope no later than October 24, 2025, will be counted.

    The Department will announce and notify all California Market Milk producers of the referendum results following tabulation of the ballots. Tabulation of ballots will not begin until the special extension period for receiving ballots has concluded.

    A copy of the notice to industry regarding the “Petition to Terminate the QIP #5” resubmitted by StopQIP on August 6, 2024 can be viewed here: https://www.cdfa.ca.gov/dairy/pdf/notices/2025_QIP_Petition_for_Referendum_Notice.p

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    The current QIP can be viewed here: https://www.cdfa.ca.gov/dairy/pdf/QuotaImplementationPlan.pdf.

    If you have any questions regarding the referendum, please contact the Quota Administration Program at pooling@cdfa.ca.gov or (916) 900-5012.

  • CDFA Announces Results of Controversial Dairy QIP Referendum

    The California Department of Food and Agriculture (Department) recently conducted a referendum vote among California Market Milk Producers within the State of California to determine whether the Quota Implementation Plan (QIP) effective November 1, 2018, should be amended to equalize regional quota adjusters such that the quota premium in all counties equal 1.43/cwt., and to terminate the QIP effective March 1, 2025.  Just two days prior to the Independence Day holiday, the Department announced the referendum results with the voice of the people against the termination of QIP. It was certainly a close call though, as seen in the referendum stats below.

    In order for the amendments to be approved California Food and Agricultural Section 62717 specifies that:

    Not less than fifty-one percent (51%) of the total number of eligible producers in the state shall have voted in the referendum AND one of the following criteria must be satisfied:

    1. a)  Sixty-five percent (65%) or more of the total number of eligible producers who voted in the referendum who produced fifty-one percent (51%) or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month commencement of the referendum period (January 2021) by all producers who voted in the referendum approve the plan, OR,

    2. b)  Fifty-one percent (51%) or more of the total number of eligible producers who voted in the referendum who produced sixty-five percent (65%) or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month commencement of the referendum period (January 2021) by all producers who voted in the referendum, approve the plan.

    Summary of the Results of the Referendum Vote: 

    Proportion of Eligible Producers that participated: 78.56%

    Proportion of those Eligible Producers Voting in Favor: 49.25%

    Proportion of those Eligible Producers Voting in Opposition: 50.75%

    Proportion of the Voted Volume Represented by Eligible Producers in Favor: 54.47%

    Proportion of the Voted Volume Represented by Eligible Producers in Opposition: 45.53%

    In summary, 78.56% of the total number of eligible producers voted in the referendum, and 49.25% voting in favor, having produced 54.47% of the total amount of fluid milk in the state, among participating producers, in January 2021. Conversely, 50.75% voting in opposition, produced 45.53% of the total amount of fluid milk in the state, among participating producers, in January 2021.

    Explanation of Results:
    78.56%     of the total number of eligible market milk producers in the State voted, therefore the first criterion was satisfied.

    Additionally, both elements of EITHER criterion in (a) OR (b) above must also be satisfied:

    1. The producers who accounted for 54.47% of the fluid milk, produced by participants in the referendum, in January 2021 voted IN FAVOR, exceeding the threshold of 51% by 3.47%, thereby satisfying the first element; however, only 49.25% of the number of eligible producers voted IN FAVOR, falling short of satisfying the threshold of 65% for the second element by 15.75%. Therefore, because only one of the two elements were satisfied, the referendum is not adopted through this criterion.

    2. 49.25% of the number of eligible producers voted IN FAVOR, falling short of satisfying the 51% threshold by 1.75%; AND, producers who accounted for 54.47% or more of the total amount of fluid milk, produced by participants in the referendum, in January 2021 voted IN FAVOR, falling short of satisfying the threshold of 65% threshold by 10.03%. Therefore, because neither of the two elements were satisfied, the referendum is not adopted through this criterion.

    Since the outcome of this referendum does not meet the criteria set forth in Section 62717 of the Food and Agricultural Code, the amendments will not be incorporated into the Quota Implementation Plan, and the QIP will remain in force and will not be terminated effective March 21, 2025. A further summary of the results is included with this notice.

    If you have questions regarding the referendum, please contact Steven Donaldson with the Quota Administration Program at (916) 900-5012 or steven.donaldson@cdfa.ca.gov.

  • Secretary Ross Orders Referendum of QIP Sunset Plan

    United Dairy Families of California — Yesterday Secretary of Agriculture Karen Ross signed a Decision of Order to hold a referendum on the petition submitted by United Dairy Families of California (UDFC).

    The petition is a producer-derived plan to sunset the Quota Implementation Plan (QIP) effective March 1, 2025 and to equalize Regional Quota Adjusters such that the quota premium in all counties equals $1.43/cwt.

    The Secretary’s signature confirms the proposed decision from Judge Timothy Aspinwall stating that UDFC’s “petition must proceed to a producer referendum.”

    According to information posted on the California Department of Food and Agriculture (CDFA) website, “the referendum voting period will be March 4, 2021 – June 1, 2021,” to ensure full participation among dairy producers.

    The petition was born out of a multi-year effort led by UDFC, a producer-led organization seeking to unite the California dairy industry. The organization held over twenty meetings around the state and solicited input from hundreds of producers to determine a path forward for the QIP.

    UDFC submitted over 300 signed petitions from dairy producers to CDFA, which initiated the referendum process.

    United Dairy Families is pleased with the Secretary’s decision to affirm the recommendation, and looks forward to encouraging all California dairy producers to cast a ballot in the forthcoming referendum.

  • Referendum on CA Dairy Quota Reform Proposal Recommended by Administrative Judge

    United Dairy Families of California — Judge Timothy Aspinwall issued a recommended decision today that United Dairy Families of California’s petition to sunset the Quota Implementation Plan (QIP) and equalize Regional Quota Adjusters (RQAs) must move forward to a referendum.

    The judge’s decision confirmed that the petition submitted to the California Department of Food and Agriculture (CDFA) met all legal and procedural requirements. The Order of Decision is now before CDFA Secretary Karen Ross, who will make the final determination on whether or not a referendum will be held.

    The petition was born out of a multi-year effort led by United Dairy Families, a volunteer organization of dairy farmers seeking to unite the California dairy industry. United Dairy Families held over twenty meetings around the state and solicited input from hundreds of producers to determine a fair process to resolve the current dispute over the QIP.

    Economists Dr. Marin Bozic and Matt Gould provided expert analyses of multiple plans that aided dairy producers in their decision to move forward with the sunset plan to the QIP.

    United Dairy Families submitted over 300 signed petitions from dairy producers to CDFA in June, which initiated the referendum process. A hearing on the petition was held on September 30, 2020, during which Judge Aspinwall heard testimony and arguments from United Dairy Families, interested organizations SAVE QIP and STOP QIP, and additional testimony from various producers.

    United Dairy Families is pleased with Judge Aspinwall’s decision, and hopes Secretary Ross will affirm the recommended decision and direct that the petition proceed to a referendum.

  • Quota Implementation Plan (QIP) Dairy Producers Meetings

    Modesto, Calif., (October 19, 2017) – In addition to informational sessions conducted by California Dairies Inc. (CDI), Dairy Farmers of America (DFA) and Land O’Lakes (LOL), a series of joint dairy producer meetings will be held throughout the state in the next few weeks. The presentations will be brief to allow ample time for questions you may have. This is a producer-only process and 51% of ballots must be returned for the California Department of Food and Agriculture (CDFA) to even consider referendum results. Therefore, producer organizations in the state want you to be aware of the importance of your vote.

    • October 16, Stanislaus County Farm Bureau, 1201 L Street, Modesto, 10am
    • November 6, Chino, Chino Fairgrounds, 5410 Edison Avenue, Chino, 10:30am
    • November 7, Tulare, Heritage Complex, 4450 S. Laspina Ave, Tulare, Conference Dining Room, 10am

    Agenda:

    • Statewide QIP Referendum: Description of the QIP and main features
    • Questions & Answers

    Note: The Quota Implementation Plan (QIP) was delivered to the post office for mailing on October 6. The ballot (which is on blue paper) is in a 9X13 white envelope with BALLOT ENCLOSED noted on the envelope. Included in the envelope is a cover letter with instructions, the QIP language, and a postage paid envelope to return the ballot. The close of the referendum is December 4, 2017.

    We believe that supporting the QIP is the only path forward to allow fair consideration for a FMMO in CA and are urging you to make an informed decision by attending one of the meetings referenced above prior to casting your vote.

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    Contact information: California Dairy Campaign, Lynne McBride: lmcb44@comcast.net, 925-385-0217 – Milk Producers Council, Kevin

    Abernathy: kevin@milkproducers.org, 209-678-0666 – Western United Dairymen, Anja Raudabaugh: araudabaugh@westernuniteddairymen.com, 916-532-9974 – California Dairies, Inc., Rob Vandenheuvel: RVandenheuvel@californiadairies.com, 559-679-5651 – Dairy Farmers of America, Francis Pacheco: fpacheco@dfamilk.com, 951-493-4942 – Land O’Lakes, Pete Garbani: PRGarbani@landolakes.com, 559-285-6357

  • Quota Implementation Plan (QIP) Dairy Producers Meetings

    Modesto, Calif., (October 10, 2017) – In addition to informational sessions conducted by California Dairies Inc. (CDI), Dairy Farmers of America (DFA) and Land O’Lakes (LOL), a series of joint dairy producer meetings will be held throughout the state in the next few weeks. The presentations will be brief to allow ample time for questions you may have. This is a producer-only process and 51% of ballots must be returned for the California Department of Food and Agriculture (CDFA) to even consider referendum results. Therefore, producer organizations in the state want you to be aware of the importance of your vote.

    • October 16, Stanislaus County Farm Bureau, 1201 L Street, Modesto, 10am
    • November 6, Chino, Chino Fairgrounds, 5410 Edison Avenue, Chino, 10:30am
    • November 7, Tulare, Heritage Complex, 4450 S. Laspina Ave, Tulare, Conference Dining Room, 10am

    Agenda:

    • Statewide QIP Referendum: Description of the QIP and main features
    • Questions & Answers

    Note: The Quota Implementation Plan (QIP) was delivered to the post office for mailing on October 6. The ballot (which is on blue paper) is in a 9X13 white envelope with BALLOT ENCLOSED noted on the envelope. Included in the envelope is a cover letter with instructions, the QIP language, and a postage paid envelope to return the ballot. The close of the referendum is December 4, 2017.

    We believe that supporting the QIP is the only path forward to allow fair consideration for a FMMO in CA and are urging you to make an informed decision by attending one of the meetings referenced above prior to casting your vote.

    Contact information:
    California Dairy Campaign, Lynne McBride: lmcb44@comcast.net, 925-385-0217
    Milk Producers Council, Kevin Abernathy: kevin@milkproducers.org, 209-678-0666
    Western United Dairymen, Anja Raudabaugh: araudabaugh@westernuniteddairymen.com, 916-532-9974 California Dairies, Inc., Rob Vandenheuvel: RVandenheuvel@californiadairies.com, 559-679-5651
    Dairy Farmers of America, Francis Pacheco: fpacheco@dfamilk.com, 951-493-4942
    Land O’Lakes, Pete Garbani: PRGarbani@landolakes.com, 559-285-6357

  • Last PRB Meeting is Behind Us: Referendum Likely Coming to California Producers Next Month

    Modesto Calif., (September 19, 2017) – That’s it, folks – the Producer Review Board (PRB) finally completed their recent mission to develop a recommendation outlining the criteria for a stand-alone producer funded quota program. The fourth and last meeting occurred on September 12, where the group of 15 dedicated producers reviewed the draft language alongside a myriad of written comments submitted by industry. While the PRB may have given the approval to move along its recommended Quota Implementation Plan (QIP) to the Secretary, the PRB is still in existence and may be assigned another mission in the future.

    So, what does the QIP look like? For one, it is very similar to the revised draft the PRB submitted to CDFA after the August 2, 2017 meeting. Most importantly, it is very similar to the current quota program. Producer costs and payments remain virtually the same (along with regional quota adjusters). The main difference is that with the QIP, producers will see the quota program funding directly come out of their milk check. This means that all California Grade A milk producers will see a deduction on their milk check that should range between $0.37/cwt to $0.40/cwt. The amount is not different from what is currently happening with the quota program; the difference comes from the fact that right now the program’s funding comes out of the pool, which means that unless you work at CDFA, you don’t see that amount each month.

    That said, despite the fundamental similarities there are a few details that are different between the current and the proposed program. On one hand, some of those details were deemed impossible to fix by the PRB according to CDFA due to a lack of legislative authority. On the other hand, other details could have been changed but the PRB made the decision not to. The mandated producer survey at least every five years is an example that comes to mind. This survey is not something that currently exists, but despite some voiced disagreement on the concept (notably by WUD in its comment letter) CDFA suggested it was added and the PRB did not remove it from the language. While this is not the same as a mandatory referendum, it does bring the quota program under the microscope more frequently than it currently is. When producers buy quota, they do so because they feel it is a safe asset – not something up for review every five years. That being said, the PRB ultimately has shown dedication to protecting quota, which should help with what they decide to do with the results of such a survey.

    Now that the PRB is done with their mission, we wait for the Secretary to review the proposed QIP. If all goes well, you should receive a ballot in your mailbox sometime in October (see timeline below). Keep an eye out for a large 9X12 envelope with an indication on the front that a ballot is enclosed. Inside will be the Plan language, a ballot (in a different color), a cover letter and a postage paid return envelope.

    By Annie AcMoody, Director of Economic Analiysis