The National Federal Milk Marketing Order (FMMO) public hearing, which began on August 23, 2023, has concluded after 12 weeks of testimony and examination. The hearing aimed to consider proposals for amending the uniform pricing formulas across all 11 FMMOs. Notably, two major dairy organizations, the National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA), presented comprehensive proposals during this process.
NMPF President and CEO, Gregg Doud expressed satisfaction with their extensive preparation and the unanimous support of their Board of Directors for the proposals. Emphasizing the need for modernization, Doud highlighted the importance of their plan in addressing the challenges faced by the industry. The focus remains on the Class I mover, with NMPF advocating for a return to the previous “higher-of” formula, citing losses of $1.2 billion incurred by farmers under the current formula since the 2018 farm bill.
Chief Economist with IDFA, Mike Brown acknowledged the evolving dairy industry since the last FMMO revisions in 2008. IDFA’s proposals include updates to make allowances and modifications to the Class I mover. They argue that these changes are necessary to align with the current dairy market dynamics and foster growth within the industry.
Both organizations stress the importance of adapting the milk marketing order to reflect the current conditions of the modern marketplace. With 40 proposals submitted by stakeholders, the U.S. Department of Agriculture (USDA) accepted 21 for consideration during the hearing. There are still several more steps as part of the process. USDA will be preparing transcripts for review and allow further amendments and closing statements from stakeholders. A referendum put forth to dairy industry members is not expected for several months.
Brian German
Ag News Director / AgNet West