Ah, the lazy dog days of summer are upon us. But wait, if you have a dog in the fight when it comes to milk paid based on a Federal Milk Marketing Order (FMMO), now is not the time to be lazy.
There are 11 FMMOs across the U.S., including the Pacific Northwest, California, Arizona, Southwest, Central, Southeast, Florida, Appalachian, Northeast, Mideast and Upper Midwest. As of 2020, they encompassed approximately 24,900 dairy producers and 62% of all milk sold in the U.S.
Authorized by the federal government, the FMMOs were established in 1937 to maintain stable marketing relationships between milk processors and farmers. They set certain provisions that require processors to pay at least the minimum specified prices to dairy farmers for the milk they supply to that market area.
To meet the changing needs of the dairy industry, the FMMOs can be amended by the USDA through a hearing process overseen by the Secretary of Agriculture. The last comprehensive revision occurred in 2000, over 20 years ago.
The dairy industry is different today, from the composition of milk produced on farms to the types of dairy products consumers prefer. Based on this, several industry groups submitted proposals and evidence to support a need for amendments to the FMMO provisions.
These were accepted by the USDA, and a hearing process began almost a year ago – Aug. 23, 2023, to be exact. After 49 days of testimony from dairy producers, industry organizations and milk processors, the hearing concluded in January. Then, following a comprehensive review of the testimony and post-hearing briefs, the USDA Agricultural Marketing Service (AMS) released its recommended decision on July 1.
The proposal includes amendments to five categories of milk pricing, including milk composition factors, surveyed commodity products, Class III and Class IV formula factors, base Class I skim milk price, and Class I and Class II differentials. See the article USDA releases proposal for Federal Milk Marketing Order reform for more details on the proposed amendments.
You, as a dairy producer, now have two remaining opportunities to influence what your paycheck will be for quite possibly the next 20 years or more.
First, the public comment period is open until Sept. 13. This is your opportunity to let the USDA know what you like or dislike about the proposal. You may submit a comment electronically; by mail to the USDA, 1400 Independence Ave., SW, Stop 9203, Room 1031, Washington, D.C. 20250-9203; or by fax: (844) 325-6940. All comments should reference docket number AMS-DA-23-0031, along with the date (July 15) and page number of the Federal Register.
After the comment period, the USDA will have 60 days to develop its final rule, which dairy producers will be asked to vote on in a referendum. This is your second and last chance – in the foreseeable future – to influence the pay price for milk in an FMMO market area.
By voting on the referendum, dairy producers are able to either approve the FMMOs as amended or reject the proposed changes. However, if the majority of voting producers reject the final rule with its amendments, the FMMO is terminated.
As I mentioned at the start, now is not the time to be lazy, although most dairy producers I know are far from being called that anyway. But, with only about a month remaining in the public comment period, now is the time to find a spare minute and send in your thoughts on these amendments to the FMMO pricing provisions.
