On November 12, the U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) issued a final decision on its website proposing to amend the uniform pricing formulas applicable in all 11 Federal milk marketing orders (FMMOs). This rulemaking proceeding was requested by the dairy industry to evaluate changes to the uniform pricing formulas applicable to all 11 FMMOs. The proposed changes are based on substantial input and must be approved by eligible producers in each marketing order via a producer referendum before they take effect.

Consistent with the recommended decision published in the Federal Register July 15, 2024, the final decision puts forth a package of amendments to update formulas and factors based on the evidentiary record of the proceeding. It also makes certain limited changes from the recommended decision based on public comments and reevaluation of record evidence, as follows:

1.  Reduction in the delayed implementation of the revised skim milk composition factors from 12 months to 6 months;
2.  Inclusion of a $0.0015 marketing cost factor in all make allowances;
3.  A modification to the methodology used to determine the nonfat dry milk make allowance; and
4.  Limited changes to certain county-specific Class I differentials.

Continue reading “USDA Issued Its Final Decision On Uniform Pricing Formulas” →