Milk Marketing Makeover: Key Insights on the New FMMO Reforms You Need to Know

In the coming weeks, dairy farmers will face a critical decision as they prepare to vote on a significant package of milk marketing reforms. The proposed changes, which include a higher price for marketed milk, could have a profound impact on the dairy industry.

Milk Marketing Makeover: Key Insights on the New FMMO Reforms You Need to Know. At the core of these reforms is a new approach to pricing Class I milk—the milk sold in grocery stores. The proposed formula would evaluate pricing using the higher of the Class III or Class IV prices, along with a differential specific to Class I production, replacing the current system that uses an average pricing mechanism. This shift could inject an estimated $800 million annually into the pockets of dairy producers.

The Federal Milk Marketing Order (FMMO) system, in place since 1937, requires a two-thirds majority for any changes to be approved. The system is made up of 11 regions with marketing orders, covering the majority of U.S. milk production. Milk Marketing Makeover: Key Insights on the New FMMO Reforms You Need to Know. As the U.S. Department of Agriculture (USDA) prepares for the referendum, ballots will be sent directly to independent milk producers and dairy cooperatives. Producers must mark their ballots by December 31 and ensure they reach the USDA by January 15, 2025, for their vote to be counted.

The USDA has also planned public webinars to help farmers understand the amendments and the voting process. These webinars, scheduled for November 19, 21, and 25, will provide valuable insights and allow farmers to ask questions about the reforms. Milk Marketing Makeover: Key Insights on the New FMMO Reforms You Need to Know.

This referendum marks a pivotal moment for the dairy industry. The financial implications and operational adjustments introduced by the reforms highlight the importance of each vote. Dairy farmers are urged to stay informed and participate actively in shaping the future of the industry through this crucial decision.