Final Rule Amends Pricing Formulas for FMMO’s

The USDA Agricultural Marketing Service (AMS) recently announced the final rule amending the uniform pricing formulas applicable in all 11 Federal Milk Marketing Orders (FMMO’s). Rusty Halvorson has more details.

According to AMS, the amendment changes included returning the base Class 1 skim milk price formula to the higher-of the advanced Class 3 or 4 skim milk prices. The Class 3 and 4 make allowances are now 25.2 cents for cheese, 22 cents for butter, 24 cents for nonfat dry milk, and 26 cents for dry whey, all on a per-pound basis. USDA also removed the 500-pound barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program Survey. The skim milk composition factors are updated to 3.3 percent true protein, 6.0 percent other solids, and 9.3 percent nonfat solids, with a six-month implementation delay.

The final rule was published in the Federal Register on January 17^th.