Some Wisconsin dairy farmers are celebrating the new trade agreement between the United States, Canada, and Mexico that could replace the North American Free Trade Agreement.
No longer called NAFTA, the new United States-Mexico-Canada Agreement, or USMCA, was announced Sunday night.
In the treaty Canada agreed to end it's Class 7 milk price, a category that allowed Canadian producers to sell certain milk ingredients below the price charged by U.S. producers. Some American dairy groups say the policy has undercut U.S. producers hoping to export to Canada and other countries.
Wisconsin's Grassland Dairy blamed the policy for lost sales which the processor said forced it to cut milk contracts for dozens of state farmers last spring.
"We’ve been looking for some good news for quite some time in the trade department for agriculture. And this agreement appears to have some positive things in it," said Jim Holte, president of the Wisconsin Farm Bureau Federation.
Canada has also agreed to allow more U.S. products into their dairy market, which is controlled by a national quota system.
Read more from Wisconsin Public Radio.