The U.S. Department of Agriculture (USDA) has issued its recommendations on changes to the Federal Milk Marketing Order system that sorts through the 21 proposals that were discussed in the long hearing process.
The return to the “higher-of” method as the Class I pricing mechanism is one issue that most producers and cooperatives focused on in the hearings. It is included in the draft; however, the elimination of shelf stable milks is an unexpected change. This milk will have a separate pricing system that is centered on a 24-month rolling adjuster to form an average pricing system.
The draft will be published in the Federal Register for a 60-day public comment period in which producers, cooperatives and processors can make suggestions. Producers then will get a chance to vote on the final proposed reforms, maybe by the end of the year but likely in early 2025. The Texas Association of Dairymen (TAD) will continue to update you on the issue and encourage your input on the presented changes to the milk market system.
Also on the federal level, TAD continues to monitor the Farm, Food and National Security Act of 2024, which is moving slowly through the legislative process.
Most experts speculate that this year’s farm bill will not be voted on this until the first quarter of 2025. The U.S. Senate Republicans’ farm bill framework was released in June, and it contains some policy priorities for the dairy industry, according to the National Milk Producers Federation.
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