Final rules for milk prices take effect starting in June

By Jason Hartschuh, Assistant Professor, OSU Extension Field Specialist, Dairy Management and Precision Livestock, Ohio State University

On Jan. 17, USDA published the Final Federal Order Rules amending the uniform pricing formulas in all 11 Federal milk marketing orders (FMMO). The full final rules can be found at: https://www.ams.usda.gov/rules-regulations/moa/dairy/hearings/national-fmmo-pricing-hearing. These rules will go into effect on June 1, 2025 for all of the following changes except for the changes to the skim milk composition factors. The changes to the skim milk composition factors will be implemented on Dec. 1, 2025. The changes will apply to all milk marketed after these dates and will be reflected in both the advanced pricing released before the milk is marketed and the class and component prices announced after the close of the month. Upcoming changes include the following.

• Updating the skim milk composition factors to 3.3% true protein, 6.0% other solids, and 9.3% nonfat solids (not implemented until December 1, 2025).… Continue reading