Milk Order Reforms Will Begin January 1.

December 15, 1999

USDA made it official Tuesday: federal milk marketing order reforms will be implemented Jan. 1.However, USDA will conduct a hearing to reconsider certain milk prices other than for fluid milk and implement those prices Jan. 1, 2001.

The department will include Option 1A in the new order; that option is considered by many to increase milk farm prices more than the option USDA had chosen. USDA will conduct a hearing to reconsider the Class III and Class IV milk prices with the resulting pricing formulas in place by Jan. 1, 2001.

Although most of the lawsuits brought against USDA over the milk pricing issue have been withdrawn, producers in the Southwest have told the court they continue to have problems with the Class III and Class IV pricing provisions in the USDA final rule.They are concerned about the final rule's new Class III and IV make allowances on dairy farmer revenue, according to the National Milk Producers Federation.