GREEN BAY, Wis. — Attendees at the 2025 Dairy Strong conference heard today that the referendum of the final Federal Milk Marketing Order rule has passed.
The rule will be published Friday, ensuring the continuation of FMMOs, a program aimed at providing business assurances for dairy farmers and processors.
Dana Coale, deputy administrator for USDA’s Agricultural Marketing Service, announced that producers in each of the 11 federal orders approved the following pricing formula amendments:
• Updating the skim milk composition factors to 3.3 percent true protein, 6 percent other solids and 9.3 percent nonfat solids.
• Removing 500-pound barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program survey.
• Updating the Class III and Class IV manufacturing allowances to $0.2519 for cheese, $0.2272 for butter, $0.2393 for nonfat dry milk and $0.2668 for dry whey, all on a per pound basis, and the butterfat recovery factor to 91 percent.
• Returning the base Class I skim milk price formula to the higher-of the advanced Class III or Class IV skim milk prices for the month. In addition, adoption of a Class I extended shelf life (ESL) adjustment for all ESL products equal to the average-of mover plus a 24-month rolling average adjuster with a 12-month lag.
• Updating the Class I differential values to reflect the increased cost of servicing the Class I market.
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.
“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 rule will be effective June 1, 2025, for all changes except for those to the skim milk composition factors. The amendments to skim milk composition factors will be implemented Dec. 1, 2025. These changes will apply to milk marketed on and after these dates, as applicable, and those changes will be reflected in both the advanced prices and pricing factors released before the start of the month and the class and component prices announced after the close of the month.
“We are pleased with this announcement today, but also recognize there is more to be done,” Edge CEO Tim Trotter said. “We are glad that AMS recognized the importance of risk management, through the introduction of ESL pricing for beverage milk, and lag for implementation of higher skim component tests. More work should be done to improve milk check transparency so dairy farmers know if their milk is pooled or not pooled. We hope all future changes will also be done in a way that does not interfere with other USDA programs that benefit dairy farmers, such as livestock insurance.”
Edge will continue to monitor the implementation of the new rules and stay engaged with the farmers and processors these changes affect, Trotter said.