MADISON, WI – Wisconsin Cheese Makers Association (WCMA) today shared a statement following the release of the U.S. Department of Agriculture’s (USDA) Final Decision regarding amendments to the uniform pricing formulas in all 11 Federal Milk Marketing Orders (FMMOs), including additional small increases in make allowances.
“This is exemplary performance by USDA staff, meeting deadlines in a complex, public hearing process to reform milk pricing,” said John Umhoefer, Executive Director of WCMA. “This Final Decision makes clear that USDA has been meticulous and responsive in its efforts to prepare these technical changes to federal milk marketing orders.”
As requested by WCMA in its public comments on the Proposed Rule, USDA improved the make allowance for nonfat dry milk, raising it from $0.2268 to $0.2393 per pound by removing old 2016 California data that USDA initially proposed. In addition, USDA added back the $0.0015 marketing allowance to all four dairy product make allowances, having removed them in the Proposed Rule.
USDA also made changes to certain proposed county-level Class 1 milk price differentials and reduced the proposed delay in implementation of the revised skim milk composition factors from 12 months out to six months after implementation.
“While this decision is not a cure-all for dairy manufacturers and processors facing rising production costs, WCMA members acknowledge the significant effort made by USDA leadership and staff throughout this process,” added Umhoefer.
A dairy producer vote on reforms in each of these federal milk marketing orders is anticipated before the end of 2024. WCMA first appealed to USDA for make allowance adjustments in March of 2023 and has since actively engaged in FMMO reform discussions, including a 49-day national hearing held from August 23, 2023 to January 30, 2024, at which numerous WCMA members testified.
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