National Milk Producers Federation (NMPF) officials expressed hope for including additional milk pricing provisions in the upcoming farm bill, as discussions continue during the ongoing public hearing to update Federal Milk Marketing Orders (FMMOs). The hearing, taking place over six weeks in Carmel, Indiana, involves testimony and discussions on 22 milk pricing reform proposals from various dairy and agriculture sector groups.
Of note:
- NMPF and the International Dairy Foods Association (IDFA) are at odds over milk pricing reform during a public hearing to update Federal Milk Marketing Orders (FMMOs).
- NMPF supports shifting back to a formula based on the “higher of” rates paid for Class III and Class IV milk, while IDFA proposes a hybrid approach to the Class I Mover.
- The split between producers and processors persists, with processors opposing anything that would lower producer prices.
- NMPF aims to balance price changes for the benefit of U.S. dairy farmers, but also recognizes the importance of risk management.
- The farm bill’s impact on make allowances is being considered, with efforts to require USDA to conduct mandatory plant cost studies every two years.
- The Dairy Margin Coverage (DMC) safety net program is set to lapse at the end of the year, but it’s unlikely that Congress will fail to act before this happens.
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