The Wisconsin Cheese Makers Association (WCMA) applauded the U.S. Department of Agriculture’s (USDA) release of its Final Decision on updates to the uniform pricing formulas in all 11 Federal Milk Marketing Orders (FMMOs). These updates include small but beneficial increases in make allowances.
WCMA Executive Director John Umhoefer praised USDA’s diligent work, stating, “USDA staff demonstrated exemplary performance by meeting deadlines in this complex, public hearing process to reform milk pricing.” He added that the USDA’s Final Decision highlights meticulous and responsive efforts in preparing these technical changes to federal milk marketing orders.
Following WCMA’s recommendations, USDA raised the make allowance for nonfat dry milk from $0.2268 to $0.2393 per pound by removing outdated 2016 California data. Additionally, USDA reinstated a $0.0015 marketing allowance to all four dairy product make allowances, which had been removed in the Proposed Rule.
USDA also revised certain county-level Class 1 milk price differentials and shortened the implementation delay for revised skim milk composition factors from 12 months to six months.
“While this decision doesn’t fully resolve the challenges of rising production costs for dairy manufacturers and processors, WCMA members appreciate the substantial effort made by USDA leadership and staff,” Umhoefer said.
Dairy producers are expected to vote on these reforms by the end of 2024. WCMA first requested make allowance adjustments from USDA in March 2023 and has been actively involved in FMMO reform discussions, including a 49-day national hearing from August 23, 2023, to January 30, 2024, where numerous WCMA members provided testimony.
