Federal Order Reform Takes Effect

After a lengthy hearing process, changes to the Federal Milk Marketing Orders took effect over the weekend. According to American Farm Bureau Federation Economist Danny Munch, the changes include “the switch to the ‘higher-of’ Class III and Class IV price formula for Class I fluid milk price,” said Munch. “Class I differentials have been raised in most regions, which helps offset costs to transportation and servicing fluid milk markets. We also remove barrel cheese from the protein formula.” Federal Order reform has been a long time coming, but Munch said the current trade disruptions may stunt its impact.