Responding to dairy industry petitions, the USDA said it would open a hearing on Aug. 23 on possible changes to the complex Federal Milk Marketing Order system that sets the price farmers get for fresh milk. The hearing in the Indianapolis suburb of Carmel, Indiana—which could run for weeks—could lead to the first comprehensive overhaul of milk marketing orders since 2000.
USDA’s Agricultural Marketing Service said in a Federal Register notice that it would hear testimony on six topics, including proposals to increase the “make” allowance given to processors to cover the costs of turning milk into products such as cheese or butter. The American Dairy Coalition welcomed the “robust scope” of the hearing and said the issue with the greatest support was to use the “higher of” rather than the current “average of” in a formula for setting the price of milk destined for sale in grocery stores.
After the hearing, the USDA will issue a recommendation that would be open to public comment, to be followed by a final decision, says a USDA description of the process for amendment of marketing orders. Producers would then vote in a referendum whether to approve the changes.
The marketing order system dates from 1937. There are 11 regions with marketing orders that cover most but not all of the 50 states and three-quarters of U.S. milk production.
Witnesses will be allowed one hour for testimony at the hearing, said the USDA. It listed 19 proposals to modify marketing orders. “Dairy farmers may testify in person at any time during the hearing or virtually via Zoom on Fridays” for 15 minutes apiece beginning on Sept. 1.
To read the Federal Register notice, click here.