Farmers Approve Milk Order Changes

December 22, 2000

Producers supplying milk for the 11 federal milk marketing orders have approved amendments to the current Class III and Class IV pricing formulas. USDA determined producer approval by polling the producer cooperative associations in eight of the markets and by conducting referenda in the Northeast, Mideast, and Upper Midwest markets. The interim amended orders will become effective for milk marketed on or after Jan, 1.

The interim final rule responds to a congressional mandate to reconsider the Class III and Class IV pricing formulas included in the final rule for the consolidation and reform of federal milk orders. USDA held a hearing May 8-12 in Alexandria, VA, to consider proposals submitted by the industry to change the formulas. A tentative final decision on these amendments was announced on Dec. 7. Comments are due on or before Feb. 5.

Milk marketing orders classify milk by use, set minimum prices that handlers must pay for each class of milk, and provide for paying average prices to all dairy farmers who supply a marketing order. The milk marketing order program ensures the fair marketing and pricing of milk..

For copies of this rule and additional information contact any market administrator office, listed below. The interim final rule and additional background information can be accessed on the web at http://www.ams.usda.gov/dairy.