Dairy Farmers Gather for FMMO Hearing to Discuss Milk Pricing Reform

The commencement of USDA's landmark hearing on federal milk pricing marks a pivotal juncture for the dairy sector's future, with the National Milk Producers Federation (NMPF) at the forefront of leadership, stated NMPF President and CEO, Jim Mulhern.

With dairy experts and governmental representatives gathered in Carmel, IN, the event kicks off a five to seven-week period of deliberation and testimony on proposals aimed at revitalizing and refining the Federal Milk Marketing Order (FMMO) system. Notably updated in 2000, this hearing represents a substantial leap toward modernization.

Mulhern emphasized that NMPF's comprehensive proposal is the bedrock of this hearing. Armed with the collective expertise of dairy farmers and cooperative analysts, NMPF is well-prepared to advocate for the industry's imperative need for these updates.

The hearing, following USDA's initial presentations, will delve into specific issues within its purview, encompassing topics such as milk composition, surveyed commodity products, Class III and Class IV formula factors, the Base Class I skim milk price, and Class I and Class II price differentials.

Upon the hearing's conclusion, participants have an allotted time to respond to the testimony. This is followed by a USDA draft decision, further discussions, and eventually a vote by dairy farmers on the final proposal, tentatively scheduled for the latter half of 2024.

Acknowledging the complexity of the hearing and the multi-stage process post-hearing, Mulhern emphasized that the hearing's commencement is just one phase in the journey. However, as a focal point in milk-pricing efforts, the upcoming weeks promise intense public discourse on the creation of an improved milk-price system for dairy farmers – a culmination that NMPF has been preparing for over several years.

Though not the ultimate outcome, this national hearing signifies a vital step toward a new and promising system. Mulhern expressed confidence in the leadership of member cooperatives, anticipating a brighter future for the industry, founded on considerable time and effort to reach this point.

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