By Jamie Martin
The USDA has proposed significant updates to the Federal Milk Marketing Orders, reflecting an effort to recalibrate the economic dynamics within the dairy sector. These proposals were developed following a lengthy evaluative process, including a substantial public hearing phase, where numerous testimonials were considered.
The focus of these changes is on enhancing the economic returns to dairy farmers, particularly by modifying the pricing formulas for bottled milk and other dairy products.
The proposed adjustments include an increase in the location values and a restoration of previously more favorable pricing methodologies for bottled milk, which had been altered in 2019. These adjustments are intended to provide a better financial return to dairy farmers, acknowledging their critical role in the agricultural economy.
The proposals also recommend reducing the prices for various classes of milk to account for purported increases in processing costs, a point of contention due to questionable data validity. This aspect of the proposal has been met with skepticism from various stakeholders who fear it might not sufficiently benefit the farming community.
While some advocated enhancements, such as broader pricing surveys and increased price differentials for certain milk classes, were not included in the USDA’s final proposals, the ongoing public comment period and subsequent rule finalization process provide an avenue for further advocacy and refinement.
The USDA is expected to finalize these regulations by mid-November, with a preliminary voting period by producers and cooperatives. Meanwhile, stakeholders are encouraged to engage with legislative processes to ensure that forthcoming farm bill provisions support comprehensive and equitable economic assessments in dairy processing, potentially influencing future revisions to these orders.
Photo Credit: usda
Categories: National