1400 Independence Avenue, SW 

 Room 2530-S, STOP 0225

 Washington, D.C. 20250-0225

July 24, 2023

Mr. Charles M. English, Jr.

Ms. Ashley L. Vulin

Davis Wright Tremaine LLP

Suite 3300 

920 Fifth Avenue 

Seattle, WA 98104-1610 

Dear Mr. English and Ms. Vulin:

This letter is in reply to Milk Innovation Group’s (MIG) proposals submitted in response to a 

Request for Additional Proposals relating to the pricing provisions of the Federal milk marketing 

order (FMMO) program. USDA received MIG’s six proposals on June 14, 2023, and subsequent 

modifications on June 20, 2023.

A Hearing Notice has been published in the Federal Register announcing a hearing will convene 

at 9:00 a.m. ET on Wednesday, August 23, 2023, at 502 East Event Centre in Carmel, Indiana. 

Testimony and evidence will be taken on the following proposals submitted by MIG:

• Proposal 1 to adopt an average-of plus rolling adjuster for the base Class I skim milk 

price; and

• Proposal 2 to update the base Class I differential from $1.60 to $0.00.

We encourage MIG to participate in the hearing to provide evidence regarding why your 

proposals should be adopted. Please refer to the Hearing website (www.ams.usda.gov/rulesregulations/moa/dairy/hearings/national-fmmo-pricing-hearing) for full information on how to

participate. 

The Secretary has determined the hearing will be limited in scope to amendments directly 

impacting the uniform pricing formulas used in FMMOs. USDA received several proposals that 

did not relate directly to the uniform FMMO pricing formulas and have been determined to be

beyond the scope of the upcoming rulemaking. Not including the proposals in this rulemaking 

proceeding does not prevent MIG from offering the proposals for consideration in a separate 

rulemaking proceeding. Requirements for submitting a proposal are outlined in 7 CFR 900.22 

and are outlined at 

www.ams.usda.gov/sites/default/files/media/DairyMarketingOrderAmendmentBrochure.pdf. 
Mr. English/Ms. Vulin Page 2

Regarding proposals submitted by MIG specifically, the following will not be considered at this 

time:

Proposal 3 and Proposal 4

Proposals 3 and 4 seek to adopt amendments that would provide direct financial incentives to 

producers for supplying Class I plants. Proposal 3 aims to establish a nationwide assembly credit 

to Class I handlers against their pool obligation that would be paid to the plants’ dairy farmers 

suppliers. Proposal 4 would establish a handler balancing credit, payable to producers who 

supply specialty fluid milk (e.g., A-2, grass-fed, organic) to Class I plants. These proposals do 

not seek to amend the uniform FMMO pricing formulas. Rather, these proposals seek to redirect 

part of the handler minimum classified milk price to those dairy farmers who supply the Class I 

handler. Accordingly, these proposals do not fall within the scope of this hearing and will not be 

heard at this time. 

Proposal 5

Proposal 5 seeks to increase the amount of allowable extended shelf-life shrinkage and 

consequently the amount of milk that can be priced at the lowest classified price for the month. 

As this change does not seek to amend the uniform FMMO pricing formulas, the proposal does

not fall within the scope of this hearing and will not be heard at this time.

Proposal 6

Proposal 6 seeks to exempt organic milk from FMMO pricing and pooling provisions if it is 

priced above the Class I minimum price. As this change does not seek to amend the uniform 

FMMO pricing formulas, the proposal does not fall within the scope of this hearing and will not 

be heard at this time.

Thank you for your interest in the FMMO program. We look forward to your participation in the 

rulemaking process.

Sincerely,

/s/

Dana H. Coale

Deputy Administrator

USDA-AMS-Dairy Program