The USDA’s Agricultural Marketing Service announced a final rule amending the uniform pricing formulas applicable in all 11 Federal Milk Marketing Orders. The final rule will be published in the Federal Register on Friday.
The amendment changes included returning the base Class 1 skim milk price formula to the higher-of the advanced Class 3 or 4 skim milk prices. The Class 3 and 4 make allowances are now 25.2 cents for cheese, 22 cents for butter, 24 cents for nonfat dry milk, and 26 cents for dry whey, all on a per-pound basis.
USDA also removed the 500-pound barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program Survey.
The skim milk composition factors are updated to 3.3 percent true protein, 6.0 percent other solids, and 9.3 percent nonfat solids, with a six-month implementation delay.
The rest of the new rule will be effective June 1, 2025.
