Cheesemakers and Dairy Cooperatives Welcome USDA’s Final Milk Marketing Order Decision
Source: DairyNews.today
The U.S. Department of Agriculture’s Agricultural Marketing Service has issued its final decision on federal milk marketing orders (FMMO), drawing positive reactions from some industry groups as farmers and cooperatives prepare to vote on the proposed changes.
The Wisconsin Cheese Makers Association (WCMA) expressed approval for adjustments made in the final rule regarding make allowances—a key component determining how much is deducted from farmers’ milk checks to cover processing costs. Notably, the USDA removed 2016 California data from the calculations and increased the make allowance deduction from $0.2268 to $0.2393 per pound. Additionally, the $0.0015 marketing allowance, which had been excluded in the proposed rule, was reinstated across all four dairy product categories.
If the new FMMO framework is approved, farmers will face deductions totaling approximately $0.38 per pound. While the revisions ensure benefits like timely payments to farmers and independent component testing, the higher make allowances have drawn criticism from some groups, including the American Farm Bureau Federation. These groups argue that without mandatory cost-of-production surveys to substantiate the increased deductions, the changes remain contentious. However, the USDA stated it lacks the authority to mandate processor participation in such surveys.
John Rettler, president of the FarmFirst Dairy Cooperative Board, commended the USDA’s revisions, noting that much of what the cooperative advocated for over the past three years has been incorporated. “The final decision aligns with many of the National Milk Producers Federation’s key proposals, which we strongly supported,” Rettler said.
The upcoming vote on the new FMMO terms will determine how the updated framework balances the needs of processors and dairy farmers in an evolving industry.
If the new FMMO framework is approved, farmers will face deductions totaling approximately $0.38 per pound. While the revisions ensure benefits like timely payments to farmers and independent component testing, the higher make allowances have drawn criticism from some groups, including the American Farm Bureau Federation. These groups argue that without mandatory cost-of-production surveys to substantiate the increased deductions, the changes remain contentious. However, the USDA stated it lacks the authority to mandate processor participation in such surveys.
John Rettler, president of the FarmFirst Dairy Cooperative Board, commended the USDA’s revisions, noting that much of what the cooperative advocated for over the past three years has been incorporated. “The final decision aligns with many of the National Milk Producers Federation’s key proposals, which we strongly supported,” Rettler said.
The upcoming vote on the new FMMO terms will determine how the updated framework balances the needs of processors and dairy farmers in an evolving industry.
