Dairy Policy Hearing Set to Address the Federal Milk Marketing Order
In response to petitions from the dairy industry, USDA announced that it will hold a hearing on Aug. 23 to discuss potential revisions to the Federal Milk Marketing Order (FMMO) system that determines the price farmers receive for fresh milk.
What to Expect from the Milk Hearing
The hearing, which will take place in the Indianapolis suburb of Carmel, Indiana, could potentially result in the first significant reform of milk marketing orders since 2000.
In a Federal Register notice, USDA's Agricultural Marketing Service outlined six subjects for testimony, including suggestions to increase the “make” allowance accorded to processors to offset the expense of converting milk into products like cheese or butter.
The FMMO system, established in 1937, covers 11 regions that represent the majority of U.S. milk production, spanning most, but not all, of the 50 states.
The American Dairy Coalition has praised the comprehensive nature of the hearing and indicated strong support for a change in the price setting formula for milk intended for retail sale. Specifically, the proposal to use the “higher of” rather than the current “average of” pricing method.
What's Next for Federal Milk Marketing Order
Following the hearing, the USDA will publish a recommendation that will be open for public feedback. After a period of comments, there will be a final decision. Following this, a referendum will be held for producers to vote on whether to accept the proposed changes.
Witnesses at the hearing will be given an hour to provide testimony, and the USDA has identified 19 proposals to modify the marketing orders.
Dairy farmers may provide testimony in person at any time during the hearing or give virtual testimony via Zoom on Fridays for 15 minutes each starting Sept. 1.
