Extending the current 30-day reporting limit to 45 days on forward priced sales on nonfat dry milk and dry whey to capture more exports sales in the USDA product price reporting.Discontinuing the use of barrel cheese in the protein component price formula. Returning to the “higher of” Class I mover.Here are NMPF’s requested changes to the Federal Milk Marketing Order System: The International Dairy Foods Association previously said it would request a hearing only on the make allowances request. NMPF plans to submit its proposal to USDA for a hearing and a potential producer referendum on the order’s modernization yet this year. Make allowances are based on estimates of what it costs to convert a hundredweight of raw milk into commodity dairy products such as cheese, butter, whey and nonfat dry milk. NMPF also recommended that USDA update make allowances and review them every two years. To try to understand how this works, I subscribe to AgriPulse News (“Providing balanced coverage of the food, fuel, feed, and fiber industries”).Īfter more than two years of discussion and more than 130 meetings, the National Milk Producers Federation Board of Directors unanimously endorsed a comprehensive plan to correct shortcomings exacerbated during the pandemic regarding pricing regulations for milk.Īmong the proposed changes, NMPF called for a return to the “higher of” Class 1 mover that was changed in the last farm bill. They are supposed to do three things: (1) establish minimum prices paid to dairy farmers, (2) ensure payments are accurate and timely, and (3) provide market information. I have to confess that Milk Marketing Orders are beyond me, but I am trying. Here are the current milk marketing regions: In this way, pooling makes a farmer’s payment independent of how the milk was used. Pooling allows farmers to receive the uniform price of all milk in the pool regardless of what end product their milk was used for. The FMMO then pools the value of that milk and shares that value among the farmers participating on that marketing order. USDA has a brochure on how the program works.įMMOs establish monthly uniform prices paid to farmers by first classifying milk by its end use. Federal Milk Marketing Orders (FMMOs) establish certain provisions under which dairy processors purchase fresh milk from dairy farmers supplying a marketing area.A marketing area is generally defined as a geographic area where handlers compete for packaged fluid milk sales…Federal orders serve to maintain stable marketing relationships for all handlers and producers supplying marketing areas, thus facilitating the complex process of marketing fresh milk.
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