USDA United States Agricultural 1400 Independence Ave., SW. 

Department of Marketing Stop 0225, South Building 

Agriculture Service Washington, DC 20250-0231 

June 1, 2023 

Invitation to Submit Proposals for Consideration in a Rulemaking Proceeding 

that may be Initiated to Amend all Federal Milk Marketing Orders 

The National Milk Producers Federation (NMPF) has requested the Department of Agriculture (USDA) 

begin a rulemaking proceeding to consider proposals to amend the pricing provisions in all Federal Milk 

Marketing Orders (FMMOs). The proposal requests USDA consider amending five provisions related 

to increasing manufacturing allowances, returning to the “higher of” as the mover for Class I milk 

prices, updating the milk composition factors, removing barrel cheese from the Class III price formula, 

and updating the Class I price surface. NMPF contends the dairy marketplace has changed substantially 

since the current FMMO pricing system was adopted in 2000 and pricing provisions should be updated 

to reflect current market conditions. 

The proposal has not yet been approved for inclusion in a Notice of Hearing. Before deciding whether a 

hearing will be held, USDA is providing the opportunity for interested parties to submit additional 

proposals regarding potential amendments to the current pricing provisions applicable to all FMMOs. 

On May 30, 2023, the International Dairy Foods Association (IDFA) and the Wisconsin Cheese Makers 

Association (WCMA) provided additional information seeking to increase manufacturing allowances, as 

requested by USDA. Those proposals are now considered additional proposals in conjunction with this 

request. All proposals may be viewed at: https://www.ams.usda.gov/rulesregulations/moa/dairy/petitions. 

The preferred method of submission for additional proposals is via email at FMMOhearing@usda.gov. 

Proposals can also be mailed to: Deputy Administrator, USDA/AMS/Dairy Programs, STOP-0225-

Room 2530, 1400 Independence Ave., SW, Washington, DC 20250-0225. Proposals must be received 

by Wednesday, June 14, 2023, at 5:00 p.m. (ET). Each pricing related proposal should be 

accompanied by a comprehensive explanation on the need for and potential impacts of the proposed 

change(s), how the proposed change(s) facilitates more orderly marketing, and any other relevant 

information. An evaluation of the submitted information will assist in determining whether the proposal 

will be accepted if a hearing is held. 

USDA will hold a virtual Pre-Hearing Information Session (Session) on Friday, June 16, 2023, 

beginning at 10:00 a.m. (ET) to allow proposal submitters to explain their proposal(s). Justification for 

adoption should not be provided during this session. USDA staff will ask questions of the submitters. 

Each submission may have one representative participate per proposal with the individual’s name and 

contact information provided to USDA at the above email address by Wednesday, June 14, 2023. 

Representatives will be contacted on Thursday, June 15, 2023, with participation instructions. 

Additional information will be posted at https://www.ams.usda.gov/rules-regulations/moa/dairy. A link 

for interested parties to virtually observe the session on Friday, June 16, will be available by 9:00 a.m. 

(ET) on this website. 
 

 

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Actions under the FMMO program are subject to the Regulatory Flexibility Act, which seeks to ensure 

that regulatory and informational requirements are tailored to the size and nature of small businesses. 

For the purposes of the FMMO program, a dairy farm is considered a small business if it has an annual 

gross revenue of less than $3.75 million.

1 A dairy products manufacturer is a small business if it has 

fewer than the number of employees listed in the chart below: 

NAICS 

Code 

NAICS U.S. industry title Size standards in 

number of employees 

311511 Fluid Milk Manufacturing 1,000 

311512 Creamery Butter Manufacturing 750 

311513 Cheese Manufacturing 1,250 

311514 Dry, Condensed, and Evaporated Dairy Product 

Manufacturing 

750 

For purposes of determining a handler’s size, if the plant is part of a larger company operating multiple 

plants that collectively exceed the listed-employee limit, the plant will be considered a large business 

even if the local plant has fewer than the listed number of employees. Interested persons are encouraged 

to submit proposals that carry out the intent of the Regulatory Flexibility Act. 

If USDA determines a hearing will be held, all known interested parties will be provided a copy of the 

Notice of Hearing. Anyone who desires to present evidence on proposals included in the Notice of 

Hearing will have an opportunity to do so at the hearing. 

Once a Notice of Hearing is issued and until the issuance of a Final Decision, USDA employees 

involved in the decisional process may not discuss the merits of a proceeding on an “ex parte” basis. 

Accordingly, any discussions you wish to have with USDA personnel, including Market Administrator 

employees, should be initiated as soon as possible. Procedural matters may be discussed at any time 

throughout the proceeding. 

Sincerely, 

Dana H. Coale 

Deputy Administrator 

Dairy Program 

1 13 CFR 121