Mixed bag for dairy farmers in proposed milk order updates

Jul 04, 2024

USDA releases reform plan, but concerns remain

By Farms.com

The U.S. Department of Agriculture (USDA) has released its proposals for revising the Federal Milk Marketing Orders (FMMOs) that govern milk pricing nationwide. These proposals follow a lengthy hearing process that considered input from farmers, processors, and others involved in the dairy industry.

The American Farm Bureau identifies both positive and negative aspects in the USDA's plan. The proposals would increase the value returned to farmers for milk bottling and reinstate a potentially beneficial pricing formula.

A major concern for the Farm Bureau is the significant reduction in milk class prices to account for processing costs. They argue that there's insufficient data to justify these reductions.

The Farm Bureau also advocated for changes that weren't included, such as increasing the price differential for Class II milk (used in various products) and adding a different cheese type to the price survey that sets the cheese milk price.

The USDA will accept public comments before finalizing the rule. The Farm Bureau plans to submit suggestions and emphasizes the importance of a new farm bill with provisions for mandatory audits of processors' costs. This data is seen as crucial for future milk pricing decisions.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.