On Jan. 16, 2025 – nearly a year and a half after the hearing began – the USDA announced that the Federal Milk Marketing Order (FMMO) referendum passed in all 11 FMMOs. The final rule is scheduled to be posted in the Federal Register on Jan. 17.

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Editor and Podcast Host / Progressive Dairy

The final rule amends pricing provisions in each of the 11 FMMOs and is effective June 1, 2025, except for the amendments to the skim milk composition factors, which will be implemented on Dec. 1, 2025, and will apply to milk marketed on and after these dates.

To pass, each of the 11 FMMOs obtained the necessary two-thirds vote in favor of adopting the following proposed amendments.

  1. Increasing milk composition factors to 3.3% protein, 6% other solids and 9.3% nonfat solids
  2. Barrel cheddar will be eliminated from milk pricing formulas and the Dairy Products Mandatory Reporting Program. After this change is implemented in June, only block cheddar prices will be used to determine the monthly average cheese price.
  3. Make allowances (per pound) will increase as follows: cheese $0.2519, butter $0.2272, nonfat dry milk $0.2393 and dry whey $0.2668. Further, butterfat recovery in the Class III formula will be increased to 91%.
  4. Class I mover returns to the “higher-of” Class III or Class IV skim milk price. A rolling monthly Class I extended shelf-life (ESL) adjustment is also part of this.
  5. Class I differentials will be altered in some regions.

Dana Coale, deputy administrator of dairy programs for the USDA’s Agricultural Marketing Service, shared news of the passage with attendees at the Dairy Strong conference in Wisconsin on Jan. 16.

Like many cooperatives, Heidi Fischer, president of Edge Dairy Farmer Cooperative, said the cooperative’s members, board and staff have remained closely engaged in the reform process, from submitting producer testimonials to advocating for change that positively affects producers.

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“We are encouraged by this positive outcome that the vitality and importance of federal orders remains,” Fischer said during a press conference at Dairy Strong. “And while there is always more to do to keep the orders relevant and purposeful, at this juncture we are encouraged that the FMMO will continue to provide the market stability needed for both producers and processors.”

The National Milk Producers Federation (NMPF) thanked the USDA and the dozens of dairy producers and cooperative leaders who were involved in the FMMO modernization process.

“Dairy farmers and cooperatives have done what they do best – lead their industry for the benefit of all,” says Gregg Doud, president and CEO of NMPF. “This final plan will provide a firmer footing and fairer milk pricing, which will help the dairy industry thrive for years to come. We appreciate the monumental contributions across government and the dairy industry that made this happen. The industry, and all dairy consumers, owe all of you a debt of gratitude.”

Tune into season 6, episode 49 of the Progressive Dairy Podcast to hear more about the amendments from Coale.