Q: Why did USDA hold a hearing?
A: A hearing was held at the dairy industry’s request to evaluate changes to the uniform pricing formulas applicable to all 11 Federal Milk Marketing Orders (FMMOs). Proponents sought to amend the uniform pricing provisions due to significant changes in the dairy industry and milk marketing since their adoption in the early 2000s.
The Agricultural Marketing Service (AMS) held the 49-day hearing beginning August 23, 2023, and concluding January 30, 2024, in Carmel, IN, pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937. During the hearing, USDA heard testimony and evidence on 21 proposals in five categories: skim milk composition factors, surveyed commodity products, Class III and Class IV formula factors, the base Class I skim milk price, and Class I and Class II differentials.
Q: When will USDA issue a final decision?
A: USDA issued a recommended decision on July 1, 2024, consistent with 7 CFR 900.28. It was published in the Federal Register on July 15, 2024 (89 FR 57580).
USDA issued its final decision on November 12, 2024, in compliance with 7 CFR 900.30. A courtesy copy is posted on the AMS website. The official version of the final decision is expected to be published in the Federal Register in late November 2024.
Q: What changed from the recommended decision to the final decision?
A: Based on comments received on the recommended decision, AMS determined that following changes were necessary for the final decision:
- Inclusion of a $0.0015 marketing cost factor in all make allowances;
- Modification to the methodology used to determine the nonfat dry milk make allowance;
- Limited changes to certain, county-specific Class I differentials; and
- Reduction in the delayed implementation of the revised composition factors from 12 months to 6 months.
Q: Will I be able to comment on the final decision?
A: No, the public comment process only occurs with the recommended decision. Parties had 60 days from publication of the recommended decision in the Federal Register, until September 13, 2024, to submit comments. All public comments received by the comment deadline were reviewed and considered by USDA in preparation of the final decision.
Q: How do I know my comments on the recommended decision were received?
A: AMS received a total of 128 comments on the recommended decision. All comments submitted were automatically sent to the FMMO rulemaking team for review. Comments can be viewed at www.regulations.gov or in the Office of the Hearing Clerk during regular business hours (1400 Independence Ave., SW, Room 1031, Washington, DC 20250).
Q: What are the next steps?
A: Eligible producers will have the opportunity to show their support for, or opposition to, the FMMOs as proposed to be amended in the final decision via a producer vote (referendum) administered and overseen by AMS.
Prior to the referendum, AMS will hold webinars to educate stakeholders on the final decision and voting process. Webinars will be held via Zoom on:
- November 19 at 11 a.m. EST
- November 21 at 3 p.m. EST
- November 25 at 11 a.m. EST.
The Zoom link will be provided on the AMS hearing website prior to each session. All sessions will provide the same information. A webinar explaining the producer referendum process is also available on the AMS hearing website.
Q: Who is eligible to vote on the FMMOs as proposed to be amended by the final decision?
A: Producers whose milk was pooled on an order during the representative month, January 2024, and have remained an active dairy producer will be provided the opportunity to vote after the final decision is published in the Federal Register. FMMO Market Administrators, who have been designated the Referendum Agents, utilize FMMO pooling records to determine producer eligibility. More information on the voting process is provided in the final decision and can be found on the hearing website.
Q: What happens after the producers vote?
A: Separate producer referenda will be conducted in each FMMO. If at least two-thirds of the producers voting or two-thirds of the milk volume represented in the vote approve of an FMMO as proposed to be amended, AMS would issue a final rule to implement the changes. A final rule would be expected to publish in the Federal Register in early 2025 and would include implementation timelines. If the approval threshold is not met, USDA would proceed to terminate the respective FMMO(s).
Q: How can I access copies of the hearing record and associated documents?
A: The hearing record and associated documents are posted on the hearing website.
Copies of documents may also be obtained from the Office of the Hearing Clerk at the following address:
Office of the Hearing Clerk, U.S. Department of Agriculture
1400 Independence Ave., SW, Stop 9203, Room 1031
Washington, DC 20250
Q: Who can I contact with questions?
A: Questions can be directed to the FMMO Rulemaking Team, via email: FMMOhearing@usda.gov or phone: 202-720-4392.