USDA Releases Milk Marketing Recommendations, Seeks Comments

By Brad Rach

49 days of hearings. 12,000 pages of testimony. A 332-page report. Finally, USDA has made some recommendations about changing the rules for Federal Milk Marketing Orders.

The process is still not over, not by a long shot. USDA calls it’s report recommendations, rather than final regulations. Now the agency is collecting comments on what it has come up with so far. USDA will study those comments this fall and then issue a final proposal.

This is a good time for a progress report on the process. Virtually all the milk National Farmers markets goes through the Federal Milk Marketing Order system, so the new FMMO regulations will affect your milk checks for years to come.

USDA’s recommendations fall into five main areas:
1. Change the formulas to adjust for present component levels
2. Remove 500-pound cheese barrels from the surveyed price used to calculate the Class III milk price
3. Increase the make allowances
4. Go back to the “higher of” language for the Class I mover price
5. Increase Class I differentials

No doubt, the comment period will be a lively one. USDA economists predict that, with the changes they recommend, farmers with higher Class I sales will likely do better than those selling mostly into cheese markets.

And it goes without saying that any time you mention make allowances, you are stirring up a hornet’s nest of controversy.

Our best guess is that you will get a ballot to vote on USDA’s final proposal sometime early next year. Remember, National Farmers does not bloc vote for you. We trust each member to tell USDA directly what is best for their own farm.

Our job is to make sure you have the information you need to make a good decision. Look for further updates in the magazine as the vote gets closer.