NMPF: Several Positives Found In FMMO Recommendations

The USDA released its recommendations for modernizing the Federal Milk Marketing Orders last month.

“Overall, we're very pleased with the recommendations that USDA has come up with. We put a lot of proposals into the record," said Stephen Cain, senior director of economic research and analysis for the National Milk Producers Federation.  "So did a lot of other groups. Fundamentally, USDA agreed with our premise and methodology for all the changes we were asking for. We don't agree with exactly how everything was implemented. They didn't do it exactly the way we had hoped for. But in general, we're very pleased with how USDA has come out with the recommended decision here.”

Cain added NMPF was especially pleased with the decision on the Class I mover.

“I think one of the big ones was moving the Class One Mover back to the higher-of. That was a very important piece for a lot of farmers around the country," Cain continued.  "We had made a change three years ago that turned out not to be the right decision. Farmers lost out on over a billion dollars in revenue, so it was critical for us to move back to the higher of. So, we're very pleased that happened. We had a little bit of a card out there, a little bit of an adjustment for extended shelf-life milk, but overall, very pleased with that bit.”

He noted there were some surprises, such as removing barrels from the Class Three formula, which Cain noted, in the long run, is going to be very supportive of dairy farmer revenue over the next few years.  A final decision is anticipated from the USDA in November.

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