“It was… quite a surprise, because it was a substantial amount taken out. Dairy farmers cannot afford anymore deductions taken out of a milk check,” said Pavelski. “It couldn’t have come at a worse time for dairy farmers.” The national average price of milk in 2019 was $3.45 per gallon for conventional whole milk, compared to $3.27 in 2018, according to the U.S. Department of Agriculture. (WBNG) — Dairy farmers across the Southern Tier have been seeing a big deduction on their milk checks from large organizations on top of all the other expenses they have to pay. “Basically when you do go to the mailbox, you might have $2.90 taken off your milk check, so if it’s $18 dollar [per hundredweight], you might be down $14 and right now milk is $11 [per hundredweight] and with the COVID-19 deduction, it brings it down to $9.30 [per hundredweight], which is just unreal,” said Pavelski. Derek Pavelski owns Pavelski Farms in Conklin. He says he didn’t expect to see that deduction and was devastated the moment he noticed it on his letter. 12 News reached out to Dairy Farmers of America. It is unclear at this time how much prices of dairy products, especially milk, would change due to the COVID-19 pandemic. However, one employee at the organization did confirm that COVID-19 deduction on dairy farmers checks was a one-time deal to help cover costs. He says originally he’d get a decent amount per hundredweight of milk that he produced. Now, many farmers who rely on organizations like National Farmers and Dairy Farmers of America, saw a big COVID-19 deduction on their milk checks. Some reported more than a thousand dollars off their total. Dairy farmers were expected to see a better year in 2020 with milk prices expected to rise, but the pandemic got in the way of all that with a lower demand for the product.
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UK defined benefit (DB) scheme sponsors could be sitting on a £260bn (€290bn) accounting black hole, a new study from consultants XPS Group has warned. The accounting gap demonstrated what XPS referred to as the growing difference between “accounting balance sheets and future long-term targets”.Wayne Segers, head of transactions at XPS, said: “The Pensions Regulator is already expecting trustees and employers to set long-term funding targets, which will drive a greater difference between accounting and the cost of pensions.“Accounting disclosures will be an ever more important window in helping to explain this gap and good pension disclosures can help allay concerns around pension contributions and set out a clear path for managing pension risk.” In its 2017 Thematic Review, the UK audit watchdog, the Financial Reporting Council, emphasised the usefulness of DB sponsors not only presenting but also explaining alternative valuations to the accounting measure in their accounts.On other key accounting assumptions, the XPS study broadly confirmed the findings of comparable studies this year from advisers KPMG and Lane Clark Peacock LLP.In relation to discounting, XPS said UK sponsors used an average discount rate of 2.8% during 2018, across a range of 2.6% to 3.1%.The consultancy added that schemes with a rate in excess of 2.85% were likely using a non-standard approach to discounting.On life expectancy, XPS discovered that some 82% of DB schemes had updated their assumptions to take account of the recent slowdown in the rate of longevity improvement.Finally, the XPS survey supported the view that the cost of implementing last year’s equality ruling had turned out to be lower than initially feared.In October, the High Court in London ruled that employers must grant equal “guaranteed minimum pension” (GMP) payments accrued between 1990 and 1997 to both male and female workers.XPS’s analysis showed that the cost of implementing the GMP ruling for most of the schemes in its sample was less than 1% of liabilities.The XPS Group survey was based on an analysis of 150 of the firm’s clients preparing accounts under a range of different financial reporting regimes including International Financial Reporting Standards.