The USDA’s Agricultural Marketing Services (AMS) has announced that the formal process of modernizing Federal Milk Marketing Orders (FMMO) is now officially underway.
This comes after the USDA received a formal proposal from the National Milk Producers Federation (NMPF) to amend the pricing provisions of all 11 FMMOs. The proposal requests USDA consider amending five provisions related to:
- increasing manufacturing (make) allowances
- returning to the “higher of” as the mover for Class I milk prices
- updating the milk composition factors
- removing barrel cheese from the Class III price formula, and
- updating the Class I price surface.
Jim Mulhern, president and CEO of NMPF says the action plan gives dairy a generational chance to update this important program to better reflect today’s market conditions and dairy producer needs.
“We’re gratified that USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full, because the whole of our plan adds up to more than the sum of its individual parts,” he says. “That’s a testament to the careful work put into this effort over two years and more than 150 meetings. But it also means that the next steps will require the same level of dedication and preparation, if not even more.”
Mulhern urged USDA to grant a hearing on the entire NMPF proposal, noting how the effectiveness of some components are dependent on the inclusion of others. Mulhern also thanked other organizations that have helped NMPF forge necessary producer consensus by sharing views and insights throughout the process, saying that spirit of unity and good-faith discussion will help FMMO modernization move forward more quickly.
“From state and regional dairy associations to the American Farm Bureau Federation, dairy farmers have had many allies and friends throughout this process,” Mulhern said. “As Secretary Vilsack has stated, consensus is necessary to successful modernization. We have that producer consensus, and we look forward to working together toward adoption and implementation of our plan.
A hearing notice is likely to come in late July and a hearing to take place in August 2023.
“Once all the testimony is considered, USDA would be on track to put forward a final plan for a producer vote in 2024. Assuming that’s successful, implementation would begin late next year,” Mulhern said.
