2024 Dairy Reforms Boost Future Market Stability

USDA Approves NMPF Proposal for Milk Pricing Modernization

In a significant advancement for the dairy sector, the USDA has endorsed the National Milk Producers Federation's (NMPF) comprehensive proposal for modernizing the Federal Milk Marketing Order (FMMO).

This approval, announced on January 16, culminates four years of meticulous planning and advocacy by NMPF, setting a robust framework for 2025.

NMPF's President and CEO, Gregg Doud, expressed gratitude towards the USDA and the numerous dairy farmers and cooperative leaders whose efforts were pivotal in refining the milk pricing system.

"This final plan will provide a firmer footing and fairer milk pricing, which will help the dairy industry thrive for years to come," Doud stated, emphasizing the collective achievement.

The modernization features several key updates, including a return to the base Class I skim milk price formula, which will now consider the higher of the advanced Class III or Class IV skim milk prices.

Additionally, adjustments to manufacturing allowances and the Class I differential values reflect the evolving market demands and costs.

The revamped pricing system, set to be published in the Federal Register and implemented starting June 1, aligns with World Milk Day, symbolizing a new era for dairy pricing. This new system is expected to enhance transparency and provide fairer compensation for dairy producers across the United States.

Farmers and stakeholders can look forward to learning more through upcoming webinars and resources provided by NMPF. These educational initiatives aim to ensure a smooth transition to the new system, while NMPF continues to advocate for further legislative support to implement all aspects of their proposal.