USDA released its proposal for the Federal Milk Marketing Order earlier this year, and it has been highly discussed in the dairy industry.
Policy specialists say there is a lot to unpack.
“We’re in a dynamic market, and I think one thing that’s really important to realize is that, you know, at the end of the day, supply and demand factors are certainly the main things that do determine price and price discovery, right? So, when we’re talking about federal orders, we’re talking about a mechanism which helps us to calculate a certain portion of that price, so I think that’s important to remember that we’re talking about some of the mathematics, some of the calculations that come through to a portion of that milk check.”
Dairy groups like the National Milk Producers Federation have applauded the proposals, saying they align with their own ideas. Economists there say it is important to have a national system that levels the playing field across the country. They also warn they do not want to create a system of winners and losers.
