Editor's note: The National Milk Producers Federation submitted its comprehensive proposal for modernizing the Federal Milk Marketing Order (FMMO) system, May 1. Read: NMPF submits FMMO modernization plan to USDA
Of three options the USDA’s Ag Marketing Service (AMS) had when considering processor petitions to hold an FMMO hearing, the agency has chosen to ask for more information. Meanwhile, a formal petition from the National Milk Producers Federation (NMPF) was expected within days.
Two dairy processor organizations submitted petitions in late March, seeking a national hearing on updating FMMO manufacturing or “make” allowances. The USDA had 30 days to either deny, issue an action plan or request additional information for any petitions seeking to amend a current FMMO.
Read: Processor groups kick off FMMO hearing request
Citing recent and ongoing studies regarding manufacturing costs and allowable milk price deductions, petitions from both the Wisconsin Cheese Makers Association (WCMA) and International Dairy Foods Association (IDFA) sought a hearing to consider adjustments. However, neither petition provided specific make allowance levels for consideration.
In written responses to WCMA and IDFA, posted on the FMMO petition page on April 28, Bruce Summers, AMS administrator, said that while an open-ended request was applicable for hearings held on make allowances when last adjusted in 2008, an amendment in the 2008 Farm Bill created new hearing guidelines. Among those guidelines was a requirement for a listing of specific make allowance values, necessary for the USDA to evaluate the potential impact of a proposal, before taking action on a hearing petition.
“Therefore, USDA requests additional information regarding the specific make allowance values to be considered to assist the secretary in deciding whether to initiate an FMMO rule-making proceeding on this issue,” Summers wrote in responses to both WCMA and IDFA.
NMPF and American Farm Bureau Federation (AFBF) initially submitted letters of opposition to the processors’ hearing requests. About 10 other dairy co-ops and organizations submitted similar opposition letters.
Read NMPF, Farm Bureau oppose processor FMMO hearing request and Dairy co-ops add to processor FMMO petition opposition
NMPF proposal near
According to NMPF senior vice president of communications, Alan Bjerga, NMPF’s broad proposal, which includes specific, interim make allowance levels, is “being finalized and will be submitted within days, not weeks.”
Once submitted, the USDA AMS will again have 30 days to deny, request more information or issue an action plan to complete a hearing within 120 days. After the hearing, multiple steps mean any proposed FMMO changes would likely be subject to a producer referendum in late summer 2024, at the earliest.
