USDA Releases Proposed Updates to FMMOs

The USDA released updates to the Federal Milk Marketing Orders. The 332-page proposal released on Monday would restore a rule that makes the Class 1 milk price the higher-of the price of Class 3 and Class 4 for a month.

After an initial reading of the proposal, the National Milk Producers Federation reacted positively. “We’re heartened that much of what we proposed after more than two years of policy development, and another year of testimony and explanation, is reflected in USDA’s recommended FMMO modernization plan,” says NMPF President and CEO Gregg Doud. “Crafting an effective milk-pricing system for farmers is complex and requires a careful balance.”

He also says USDA’s plan acknowledges that complexity, and while it doesn’t match the Federation’s proposal in every detail, Doud says it looks largely in keeping with the comprehensive approach painstakingly determined by the work of dairy farmers and their cooperatives over the past three years.