Well its not just any organization... the organization's sole purpose is promotion (or at least that's what I gather from the name, National Fluid Milk Processor Promotion Program) - and the internet happens to be a damn good place to promote, especially on a memorable domain like milk.com. And $110M a year revenue over 10 years is $1.1B revenue, and I think milk.com would probably still be relavent and valuable 10 years out. So $10M of $1.1B doesn't seem so bad at all.

He doesn't say they will, he doesn't even say they should. He's just saying that he's not selling for less, which can be understood as he's not selling, period.

Or maybe he's not interested in selling. But to make him interested in selling, he's got a number that might get his interest. It's a supply and demand thing. He's not supplying, but if you demand at a high enough price, he just might. Maybe. Because he likes his domain.