USDA Issues Final Rule On Federal Milk Marketing Orders

Jan 21, 2025

USDA published a final rule last week in the Federal Register amending the uniform pricing formulas applicable in all 11 federal milk marketing orders. This comes after an almost 18-month-long process.

The rule includes the following pricing formula amendments:

Returning the base Class I skim milk price formula to the higher-of the advanced Class III or Class IV skim milk prices for the month. In addition, adoption of a Class I extended shelf life (ESL) adjustment for all ESL products equal to the average-of mover plus a 24-month rolling average adjuster with a 12-month lag.
Updating the Class III and IV manufacturing allowances for cheese, butter, nonfat dry milk and dry whey, and the butterfat recovery factor.
Updating the Class I differential values to reflect the increased cost of servicing the Class I market.
Updating skim milk composition factors, with implementation delayed six months.
Removing 500 lb. barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program survey.

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