WASHINGTON — Changes are coming to the uniform pricing formulas in the Federal Milk Marketing Orders (FMMOs), including small increases in make allowances.

The US Department of Agriculture (USDA) Agricultural Marketing Service (AMS) revealed its final decision Nov. 12, following a national hearing, recommended decision and ensuing public comment period.

Among the amendments to pricing formulas for all 11 FMMOs, USDA raised the make allowance for nonfat dry milk from $0.2268 to $0.2393 per pound – as requested during public comments by the Wisconsin Cheese Makers Association (WCMA).

Also of note, after removing a $0.0015 marketing allowance for all four dairy product make allowances in its proposed rule, USDA in its final decision included the marketing allowances.

Pending approval, the make allowances will increase for cheese (to $0.2519), butter ($0.2272), dry whey ($0.2668) and nonfat dry milk ($0.2393). Current make allowances are $0.2003 for cheese, $0.1715 for butter, $0.1991 for dry whey and $0.1678 for nonfat dry milk.

Additionally, USDA reduced the proposed delay in implementing revised skim milk composition factors from 12 months out to six months after implementation; changed the methodology used to determine the nonfat dry milk make allowance; and limited changes to certain county-specific Class 1 differentials.

WCMA executive director John Umhoefer described USDA’s process for addressing amendments to milk pricing as exemplary.

“This final decision makes clear that USDA has been meticulous and responsive in its efforts to prepare these technical changes to federal milk marketing orders,” Umhoefer said.

He added that the final decision wasn’t a “cure-all for dairy manufacturers and processors facing rising production costs,” but said WCMA and its members acknowledged USDA’s “significant effort” throughout the process, which began in August 2023 with a 49-day national hearing in Carmel, Indiana.

The dairy industry requested the rulemaking proceeding, prompting changes to the pricing formulas for FMMOs.

AMS noted the changes outlined in the final decision must be approved by eligible producers in each marketing order via producer referendum before they take effect. AMS said it will mail ballots to eligible independent producers and qualified cooperative associations, and voters must submit returned ballots by Jan. 15, 2025.

The final decision will soon publish in the Federal Register.