Federal milk marketing order proposal goes to referendum stage
The time is almost here for dairy producers to weigh in on proposed USDA Federal Milk Marketing Order amendments through a referendum process.
The USDA oversees the Federal Milk Marketing Order program which includes 11 milk marketing orders and applies to about 75% of total U.S. milk production. The regulatory provisions of the individual orders apply to handlers, not dairy farmers, and specify how dairy farmers supplying a marketing area will share the money from their raw milk sales.
The first comprehensive review of FMMO pricing formulas in two decades took place from August 2023 to January 2024.
In July 2024, USDA's Agricultural Marketing Service issued a recommended decision, opening a comment period for feedback on proposed changes which closed in September.
The USDA's proposed amendments to five categories of milk pricing are:
A final decision must be released by USDA by Nov. 12. Next is the referendum phase, in which dairy farmers pooled on an order have a say in whether the proposed amendments become the new rules, or if the order itself is terminated.
According to Daniel Munch, economist with the American Farm Bureau Federation, given the potential for changes to minimum pricing formulas and regulations, participation in the referendum is "crucial."
"Each farmer's vote will help shape how milk prices are determined and how products are valued moving forward," said Munch. "In a system with far-reaching impacts on farm operations and revenue, making your voice heard is more important than ever."
