The hearing will cover 22 different proposals on a range of issues. Several address “make allowances” in component calculation (with prospective impact on Class III and Class IV pricing). USDA will also consider several different avenues for changing Class I milk price calculation. Other items for deliberation include removing barrel cheddar cheese from the NDPSR survey and adding 640-pound block cheddar to the survey.
There are a lot of moving pieces here, including timing, that make it impossible to offer any concrete insights about impact on prices. It could take the better part of a year before the process ends and USDA announces a final decision and implementation plan (adding additional months). We’ll monitor developments and will report accordingly.
In the meantime, you can access the Federal Register Notice and a handy guide to the hearing process, below.
Federal Register Notice
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