FMMO modernization: USDA’s final decision and the impact it could have on milk prices

In this two-part episode, hear from Dana Coale – deputy administrator of the Agricultural Marketing Service (AMS) Dairy Programs at the USDA – about the five areas of milk pricing included in the USDA’s Federal Milk Marketing Order (FMMO) final decision, and learn about the referendum process. Later in the episode, Alex Gambonini joins host Kimmi Devaney to discuss the impact these proposed amendments may have on milk prices. Dairy producers and cooperatives will have until Dec. 31, 2024, to cast their ballots.

Here is an overview of the episode:

• [~0:55] Coale’s role at the USDA and during the FMMO hearing process
• [~2:30] An overview of the FMMO modernization process
• [~7:50] What stood out the most to Coale during the hearing
• [~12:15] Differences between the recommended decision and final decision
• [~15:05] Proposed amendments to milk composition factors
• [~16:30] Proposed amendments to surveyed commodity products
• [~16:55] Proposed amendments to make allowances
• [~17:50] Proposed amendments to Class I differentials
• [~18:50] Proposed amendments to Class I mover/base Class I skim milk price
• [~19:45] Timeline for the referendum process
• [~24:55] What happens if the majority of producers in an FMMO vote do not vote to approve the order as amended
• [~27:45] How producers will know if their cooperative plans to block vote on their behalf or if they will vote individually
• [~29:10] An overview of the three webinars the USDA is holding in November to answer producer questions
• [~35:55] About Gambonini’s dairy background and her role at HighGround Dairy
• [~37:50] HighGround Dairy’s process for analyzing the potential impacts of the proposed amendments
• [~38:45] Projected impact: Milk composition factors
• [~41:10] Projected impact: Surveyed commodity products
• [~42:35] Projected impact: Make allowances
• [~45:35] Projected impact: Class I mover/base Class I skim milk price
• [~46:50] Projected impact: Class I differentials
• [~48:15] Where different regions could see different impacts
• [~50:35] Benefits to the dairy industry if proposed amendments are approved
• [~53:00] Challenges associated with the proposed amendments
• [~54:30] Key points dairy producers should know

Read more about the final decision on the hearing website. Questions regarding the final decision can be sent to the USDA via email.

Email the HighGround Dairy team.