Unlock extra profits with beef-on-dairy integration. Discover how dairy farmers can boost income and meet market demands. Ready to transform your farm?
Summary: The beef-on-dairy trend is booming, driven by changing consumer preferences, economic perks, and environmental benefits. This shift offers dairy farmers an unprecedented chance to increase revenues, with 80% earning premiums for crossbred calves. Premiums range from $150-$200 per head, reaching up to $700, and often surpass Holsteins by at least 50%. This change ensures a consistent beef supply, enhanced traceability, lower carbon footprint, and superior meat quality. Strategic genetic selection and high-quality production can meet the rising demand for premium beef, offering per-pound premiums from $4 to $6. Capitalize on this profitable market shift now—download our free guide and start thriving today!
- 80% of dairy farmers earn premiums from beef-on-dairy crossbred calves.
- Premiums range from $150 to $200 per head, potentially reaching up to $700.
- Beef-on-dairy calves often fetch premiums at least 50% higher than Holsteins.
- Consistent beef supply and enhanced traceability from farm to fork.
- Lower carbon footprint due to improved feed efficiency and reduced GHG emissions.
- Superior meat quality with higher red meat yield, better marbling, and desirable meat color.
- Strategic genetic selection underpins the overall success of beef-on-dairy integration.
- Per-pound premiums for crossbred calves range from $4 to $6.
- Profit from the growing demand for premium beef by integrating beef-on-dairy crossbreeding.
- Don’t miss out—download our free guide now!

Consider the prospect of virtually tripling your revenues for each calf reared. This is not a faraway fantasy but a practical possibility for dairy producers who capitalize on the beef-on-dairy trend. With the present dynamics of the beef market, driven by decreasing beef cattle numbers and changing customer wants, the need to incorporate beef genetics into dairy operations is critical. According to a recent poll, 80% of dairy farmers and 58% of calf raisers currently earn a premium for beef-on-dairy crossbred calves, indicating a significant opportunity for greater income. These results imply a considerable increase in revenue, with some farmers reporting per-head premiums of up to $700 and per-pound premiums exceeding $8. The need to implement beef-on-dairy methods is evident. Now is the moment to act and profit from this profitable market change.
The Modern Dairy Farmer’s Guide to Thriving with Beef-On-Dairy Crossbreeding
The contemporary dairy farmer’s terrain is rapidly changing, with beef-on-dairy cattle becoming more widespread. This trend is driven by shifting customer choices and a decline in conventional beef cattle numbers, presenting a lucrative opportunity for dairy producers. Economically, the prospect of a premium—ranging from $150 to $200 per head, or possibly more—makes this change appealing. It’s not only about surviving; it’s about generating a profitable revenue stream.
Additionally, there are considerable environmental advantages. Beef-on-dairy cattle have a smaller carbon footprint, improved feed efficiency, and fewer greenhouse gas emissions. This method aligns well with the rising consumer demand for sustainable agricultural techniques, making it both lucrative and responsible.
This isn’t a passing trend. It’s a strategic move for the dairy business that addresses market needs, increases revenues, and promotes sustainability. Don’t miss this opportunity—take action now and download our free guide to get started on this promising venture.
The Financial Benefits of Incorporating Beef-On-Dairy Crossbreeding into Your Herd are Compelling
Beef-on-dairy crossbreeding offers economically solid advantages. A recent study found that these hybrid calves command far higher premiums than standard Holsteins, making it a viable endeavor for dairy producers.
- Per Head Premiums: Most dairy producers reported collecting $150-$200 per head, with some bonuses reaching $350-$700. This demonstrates the extra advantage of crossbreeding.
- Per Pound Premiums: Premiums per pound ranged between $4 and $6, with some exceeding $8. This demonstrates the constant economic benefits of beef-on-dairy crossbreeding.
- Comparison to Holsteins: Dairy producers reported at least a 50% premium for beef-on-dairy calves over Holsteins, with some experiencing a treble rise. This considerable cash rise emphasizes the strategic value of this technique.
Ensuring Market Stability Through Sustained Beef Production: The Role of Continuous Breeding in Dairy Operations
Continuous breeding in the dairy business maintains a consistent beef supply, efficiently meeting customer demand. Dairy producers can consistently produce beef-ready calves via enhanced genetic selection and precision breeding strategies. This strategy ensures high-quality beef and meets customer expectations for transparency and traceability. Continuous breeding keeps prices stable and increases customer confidence in the cattle supply chain.
Farm-to-Fork Traceability: Elevating Quality and Trust
One key benefit of beef-on-dairy integration is the ability to track each animal’s origin, parentage, genetic capacity, and production techniques. Transparency from farm to fork gives customers trust in the quality and provenance of beef while allowing farmers to maintain higher standards and enhance breeding procedures.
Leveraging Beef-On-Dairy Crossbreeding for Economic and Environmental Gains
Incorporating cattle genetics into dairy cows has significant economic and environmental advantages. Beef-on-dairy crossbreeding increases feed efficiency, as it requires less feed to achieve more weight growth than conventional dairy breeds. This efficiency reduces greenhouse gas emissions, making your farm more sustainable and environmentally friendly.
The Meat Quality Edge: Elevating Your Produce with Beef-On-Dairy Crossbreeding
Regarding meat quality, beef-on-dairy cattle outperform regular dairy steers hands out. They increase red meat output, enhance quality grades, and provide better meat color. They enhanced marbling, which results in tastier and juicier meat. These characteristics make beef-on-dairy cattle a good solution for satisfying customer demand while maintaining premium pricing.
Debunking Common Concerns: Why Beef-On-Dairy Integration Is a Game Changer
Like any other agricultural innovation, beef-on-dairy integration raises common concerns and misunderstandings. Let’s address a couple of them directly to bring clarity and confidence:
“Will my dairy cows’ milk production suffer?” Not. Beef-on-dairy crossbreeding is carefully controlled to ensure that it does not disrupt the core function of milk production. Selecting the proper genetics for dairy and beef qualities allows you to retain good milk outputs while producing profitable beef calves.
“Isn’t managing beef and dairy herds too complicated?” The integration process may seem difficult initially but can be made more efficient. Many farmers have overcome this challenge by developing clear procedures and using technology to improve herd management. Furthermore, the higher revenue from beef-on-dairy calves often surpasses the early learning curve.
“Aren’t beef-on-dairy calves less healthy or problematic?” Not at all. When treated appropriately, these crossbred calves are muscular and well-suited to flourish. Their health and growth frequently improve when beef genetics are introduced into dairy calves. It’s all about choosing suitable AI sires and carefully controlling the calves from birth.
“Is it worth the investment?” Consider market premiums: Dairy producers often earn a considerable per-head or per-pound premium for crossbred calves with beef and dairy. Financial returns may be up to three times those of typical Holstein steers. The economic rewards, therefore, make this investment very valuable.
Do not allow preconceptions to keep you back. Integrating beef into dairy has shown to be helpful for contemporary dairy farms, both practically and monetarily. Download our free guide today: The Complete Dairy Breeder’s Guide to Beef-on-Dairy Integration!
Master Your Herd: Strategic Steps to Beef-On-Dairy Integration
- Assess Your Current Herd: Begin by assessing your current dairy herd’s genetic potential and performance. Identify the cows with the greatest reproductive and health features.
- Select the Right Beef Sire: Select sires recognized for delivering high-quality beef qualities. Angus and other cattle breeds are famous for their high marbling and meat quality.
- Develop a Breeding Program: Make a strategy incorporating artificial insemination (AI) and other breeding procedures. Depending on your plan, you might use sexed semen to generate more beef-dairy cross calves or standard dairy alternatives.
- Genetic Selection: Use genetic testing technologies to estimate the breeding potential of possible sires. Choose sires that will complement the genetic qualities of your dairy cows, aiming for a mix of dairy and beef characteristics.
- Implement Strict Health Protocols: Maintain strict health standards to protect the health of your dairy cows and calves. This includes immunizations, routine check-ups, and preventative measures.
- Monitor Calf Growth and Development: Closely monitor the crossbred calves’ growth rates and general health. Using technology and software, track their growth from birth to market.
- Feed and Nutrition Management: Provide a balanced diet for hybrid calves’ demands. Ensure they get the correct calories, protein, and minerals to maximize their development and meat quality.
- Set Up Efficient Record Keeping: Create a sophisticated system for monitoring genetics, health records, and performance metrics. This allows you to make more informed judgments and retain openness in your organization.
- Prepare for Market: Understand market needs and build partnerships with shippers and processors specializing in beef-on-dairy crossbreeds. Ensure that your animals fit the exact criteria for premium pricing.
- Download Our Free Guide: Our thorough handbook offers a step-by-step process for incorporating beef-on-dairy breeds into your operations.
Successful Beef-On-Dairy Integration Depends on Strategic Genetic Selection
The path to effective beef-on-dairy integration begins with judicious genetic selection. Selecting the appropriate genetics is critical for establishing a firm basis for your breeding initiatives. This entails choosing features crossbreeding can improve, such as cattle having the most significant dairy and meat production attributes. Farmers may set themselves up for success by concentrating on genetics that promote feed efficiency, growth rates, and carcass quality.
Next, rigorous breeding strategies are essential. These projects use artificial insemination (AI) with established beef sires to improve herd performance and consistency. They optimize production and profitability while increasing the herd’s genetic variety and resilience. Regular monitoring ensures that the herd satisfies commercial and environmental standards.
The third phase, meat quality finishing, focuses on behaviors influencing the meat’s quality, including feeding regimens and health management. Aligning with industry standards and customer expectations increases beef marbling, softness, and flavor. High-quality meat commands higher pricing and establishes your farm’s image as a dependable supplier of premium cattle.
These elements, taken together, create a complete strategy for ensuring the success of the beef-on-dairy business. Dairy producers should leverage this profitable market and maintain long-term development and profitability by prioritizing genetic selection, systematic breeding programs, and thorough meat quality finishing.
The Bottom Line
As the dairy business adapts to changing market realities, including beef-on-dairy crossbreeding is a strategic step toward increased profitability and sustainability. By constantly breeding to meet customer demand, dairy producers can ensure a steady beef supply, which is critical for market stability. The ability to track these animals from farm to fork improves quality and customer confidence. This approach is a pioneer in sustainable agriculture because of its economic and environmental benefits, which include increased feed efficiency and lower greenhouse gas emissions. The improved meat quality, as seen by higher marbling and color, completes the persuasive argument for using this technique. Finally, effective beef-on-dairy integration depends on deliberate genetic selection and sound decision-making. As you evaluate the benefits of beef-on-dairy crossbreeding, we encourage you to take the next step toward a more prosperous and sustainable agricultural enterprise.
Download “The Ultimate Dairy Breeders Guide to Beef on Dairy Integration” Now!
Are you eager to discover the benefits of integrating beef genetics into your dairy herd? “The Ultimate Dairy Breeders Guide to Beef on Dairy Integration” is your key to enhancing productivity and profitability. This guide is explicitly designed for progressive dairy breeders, from choosing the best beef breeds for dairy integration to advanced genetic selection tips. Get practical management practices to elevate your breeding program. Understand the use of proven beef sires, from selection to offspring performance. Gain actionable insights through expert advice and real-world case studies. Learn about marketing, financial planning, and market assessment to maximize profitability. Dive into the world of beef-on-dairy integration. Leverage the latest genetic tools and technologies to enhance your livestock quality. By the end of this guide, you’ll make informed decisions, boost farm efficiency, and effectively diversify your business. Embark on this journey with us and unlock the full potential of your dairy herd with beef-on-dairy integration. Get Started!






































David Brown, like all of us, had his flaws. Endowed with remarkable skills as a breeder, showman, and promoter, he was often hailed as the finest cattleman of his era. Growing up on Browndale Farms in Paris, Ontario, he had towering expectations to meet. His father, R.F. Brown, was a luminary in the dairy world, winning the esteemed Curtis Clark Achievement Award in 1988 and the Klussendorf Trophy at the 1993 World Dairy Expo. As one of Canada’s most successful breeders, R.F. clinched Premier Breeder and Exhibitor honors at the World Dairy Expo and the Royal Winter Fair. His accolades included five Grand Champions at the Royal Winter Fair: Green Elms Echo Christina (1972 and dam of Browndale Commissioner), Vanlea Nugget Joyce (1974), Marfield Marquis Molly (1978), and Du-Ma-Ti Valiant Boots Jewel (1988). David certainly had big shoes to fill. And fill them he did. His list of accomplishments was extensive: He led Ontario’s top herd in production in 1991, bred two All-Canadian Breeder’s Herd groups, and produced the All-American Best Three Females in 1998. He was twice crowned Premier Breeder at the International Holstein Show and accumulated 92 awards in All-Canadian and All-American contests from 1986 through 2004. Yet, despite two auction sales in 1991 and 1996 aimed at reducing his debts, financial relief was elusive. Over time, his wife left him, his children moved away, and his prized cattle were sold off. Eventually, David relocated to Colombia, where he passed away. Views on Brown are mixed—some saw him as a charming inspiration, while others regarded him as a rule-bending showman or an irresponsible debtor. Nonetheless, his rapid ascent and remarkable achievements in his lifetime are indisputable. Many wealthy individuals have invested vast sums of money into the cattle industry, chasing the same recognition, only to leave empty-handed. What distinguished David Brown was his nearly mystical talent for preparing animals for the show ring and transforming them into champions.
Edward Young Morwick, a distinguished author, cattle breeder, and lawyer, was born in 1945 on the Holstein dairy farm owned by his father, Hugh G. Morwick. His early memories of his mother carrying him through the cow aisles profoundly shaped his trajectory. Although Edward pursued a career in law, excelling immediately by finishing second out of 306 in his first year, he harbored a deep-seated passion for journalism. This led to his later work chronicling Holstein’s cow history. His seminal work, “The Chosen Breed and The Holstein History,” stands as a cornerstone for those delving into the evolution of the North American Holstein breed. In it, he compellingly argues that the most influential bulls were those of the early historical period. (Read more: 





































USDA Proposes Return to ‘Higher-Of’ Method for Fluid Milk Pricing: What It Means for Dairy Farmers
Learn how USDA’s plan to bring back the ‘higher-of’ method for milk pricing might affect farmers. Will this change help dairy producers? Find out more.
The USDA plans to bring back the ‘higher-of’ pricing method for fluid milk, a move intended to modernize federal dairy policy based on a comprehensive 49-day hearing that evaluated numerous industry proposals. This method picks the higher price between Class III (cheese) and Class IV (butter and powder) milk, which could signify a notable shift for the dairy industry. Previously, the 2018 Farm Bill had replaced the ‘higher-of’ system with an ‘average-of’ pricing formula, averaging Class III and IV prices with an additional 74 cents. While switching back might benefit farmers, it also introduces risks like negative producer price differentials in 2020 and 2021. The USDA’s proposal seeks to mitigate these challenges and provide farmers financial gains amidst modern dairy economics’ complexities.
Understanding the Federal Milk Marketing Order (FMMO) System
The Federal Milk Marketing Order (FMMO) system, established in 1937, plays a crucial role in ensuring fair and competitive dairy pricing. It mandates minimum milk prices based on end use, providing price stability for dairy farmers and processors across the U.S. Each FMMO represents a distinct marketing area, coordinating pricing and sales practices.
The ‘higher-of’ pricing method for Class I (fluid) milk has long been integral to this system. It sets the Class I price using the higher Class III (cheese) or Class IV (butter and powder) price, offering a financial safeguard against market volatility. This method ensures dairy producers receive a fair price despite market fluctuations.
However, the 2018 Farm Bill introduced an ‘average-of’ formula, using the average of Class III and IV prices plus 74 cents. While aimed at modernizing milk pricing, this change exposed farmers to greater risk and reduced earnings in volatile periods like 2020 and 2021.
A Marathon Analysis: Unraveling Modern Dairy Policy over 49 Days in Indiana
The marathon hearing in Indiana highlighted the complexities of modern dairy policy. Spanning 49 days, from Aug. 23, 2023, to Jan. 30, it reviewed nearly two dozen industry proposals. This intensive process reflected the sophisticated and multifaceted Federal Milk Marketing Order system as stakeholders debated diverse views and intricate data to influence future milk pricing.
Decoding Dairy Dilemmas: The “Higher-Of” vs. “Average-Of” Pricing Methods
The “higher-of” and “average-of” pricing methods are central to understanding their impact on farmers’ incomes. The “higher-of” process, which uses the greater of the Class III (cheese) price or Class IV (butter and powder) price, has historically provided a safety net against dairy market fluctuations. This method ensured farmers got a better price, potentially safeguarding their income during volatile times. Yet, it increased the risk of negative producer price differentials, which reduced earnings in 2020 and 2021.
On the other hand, the “average-of” method, introduced by the 2018 Farm Bill, calculates the price as the average of Class III and IV prices plus 74 cents. While this seems balanced and predictable, it often fails to deliver the highest financial return when either Class III or IV prices exceed expectations. Farmers have noted that this method might not reflect their costs and economic challenges in volatile markets.
The “higher-of” method often offers better financial outcomes during favorable market conditions but brings increased uncertainty during unstable periods. Conversely, the “average-of” method offers stability but may miss optimal pricing opportunities. This debate within the dairy industry over the best formula to support farmers’ livelihoods continues. Thus, the USDA’s proposal to revert to the “higher-of” method invites mixed feelings among farmers, whose earnings and economic stability are closely tied to these pricing mechanisms.
Examining the Potential Implications of the USDA’s Return to the ‘Higher-Of’ Pricing Method
The USDA’s return to the ‘higher-of’ pricing method, while potentially beneficial, also presents some challenges that the industry needs to be aware of. This approach, favoring the higher Class III (cheese) or Class IV (butter and powder) prices, seems more beneficial than the ‘average-of’ formula. However, deeper insights indicate potential challenges that need to be carefully considered.
The ‘higher-of’ method usually leads to higher fluid milk prices but poses the risk of negative producer price differentials (PPDs). When the Class I price far exceeds the average of the underlying class prices, PPDs can become negative, as seen during the harsh economic times of 2020 and 2021, exacerbated by the COVID-19 pandemic.
Negative PPDs can hit farmers’ financial stability, making it harder to predict income and manage cash flows. This reflects the delicate balance between gaining higher milk prices now and ensuring long-term financial reliability.
The 24-month rolling adjuster for extended-shelf-life milk introduces further uncertainty. Its effect on milk pricing needs to be clarified, potentially causing fluctuating incomes for farmers in this segment.
In conclusion, while the ‘higher-of’ pricing method may offer immediate benefits, risks like negative PPDs and uncertain impacts on extended-shelf-life milk pricing demand careful consideration. Farmers must balance these factors with their financial strategies and long-term sustainability plans.
New Horizons for ESL Milk: Navigating the 24-Month Rolling Adjuster Amidst Market Uncertainties
Under the USDA’s new proposal, regular fluid milk will revert to the ‘higher-of’ pricing. In contrast, extended-shelf-life (ESL) milk will follow a different path. The plan introduces a 24-month rolling adjuster for ESL milk to stabilize prices for these longer-lasting products.
Yet, this change brings uncertainties. Laurie Fischer, CEO of the American Dairy Coalition, questions the impact on farmers. The 24-month adjuster is untested, making it difficult to foresee its effects amid fluctuating market conditions. ESL milk’s unique production and logistics further complicate predictions.
Critics warn that the lack of historical data makes it hard to judge whether this method will help or hurt farmers. There’s concern that it could create more price disparity between regular and ESL milk, potentially straining producers reliant on ESL products. While USDA aims to tailor pricing better, its success will hinge on adapting to real-world market dynamics.
Make Allowance Controversy: Balancing Processor Profitability and Farmer Finances
The USDA also plans to increase the make allowance, a credit to dairy processors to cover rising manufacturing costs. This adjustment aims to ensure processors are adequately compensated to sustain profitability and operational efficiency, which is expected to benefit the entire dairy supply chain.
However, this proposal has drawn substantial criticism. Laurie Fischer, CEO of the American Dairy Coalition, argues that the increased make allowance effectively reduces farmers’ milk checks, disadvantaging them financially.
Pivotal Adjustments and Economic Realignment in Dairy Pricing Formulas
The USDA’s proposal adjusts pricing formulas to match advancements in milk component production since 2000. This update ensures that farmers receive fair compensation for their contributions.
The proposal also revises Class I differential values for all counties to reflect current economic realities. This is essential for maintaining fair compensation for the higher costs of serving the fluid milk market. By reevaluating these differentials, the USDA aims to align the Federal Milk Marketing Order system with today’s economic landscape.
Recalibrating Cheese Pricing: Transition to 40-pound Cheddar Blocks Only
Another critical change in USDA’s proposal is the shift in the cheese pricing system. Monthly average cheese prices will now be based solely on 40-pound cheddar blocks instead of including 500-pound cheddar barrels. This aims to streamline the process and more accurately reflect market values, impacting various stakeholders in the dairy industry.
Initial Reactions from Industry Leaders: Balancing Optimism with Key Concerns
Initial reactions from crucial industry organizations reveal a mix of cautious optimism and significant concerns. The National Milk Producers Federation (NMPF) showed preliminary approval, noting that USDA’s proposal incorporates many of their requested changes. On the other hand, Laurie Fischer, CEO of the American Dairy Coalition, raised concerns about the make allowance updates and the impact of extended-shelf-life milk pricing, fearing it might hurt farmers’ earnings.
Structured Engagement: Navigating the 60-Day Comment Period and Ensuing Voting Procedure
To advance its proposal, USDA will open a 60-day public comment period, allowing stakeholders and the public to share insights, concerns, and support. This process ensures that diverse voices within the dairy industry are heard and considered. Once the comment period ends, USDA will review the feedback to gain a comprehensive understanding of industry perspectives, informing the finalization of the proposal.
Afterward, the USDA will decide based on the collected data and input. However, the process continues with a voting procedure where farmers pooled under each Federal Milk Marketing Order (FMMO) cast votes to approve or reject the proposed amendments. Each Federal Order, representing different regions, will vote individually.
This voting process is crucial, as it directly determines the outcome of the proposed changes. For adoption, a two-thirds majority approval within each Federal Order is required. Suppose a Federal Order fails to meet this threshold. In that case, USDA may terminate the order, leading to significant changes in how milk pricing is managed in that region. This democratic approach ensures that the final policies reflect majority support within the dairy farming community, aiming for fair and sustainable outcomes.
Regional Impacts: Navigating the Complex Landscape of FMMO System Changes
The proposed changes to the Federal Milk Marketing Order (FMMO) system are bound to impact various regions differently, given each Federal Order’s unique economic landscape. Federal Order 1, covering most New England, eastern New York, New Jersey, Delaware, southeastern Pennsylvania, and most of Maryland, may benefit from more favorable fluid milk pricing due to the higher-of method. With significant urban markets, this region could see advantages from updated Class I differential values addressing the increased costs of serving these areas.
On the other hand, Federal Order 33—encompassing western Pennsylvania, Ohio, Michigan, and Indiana—might witness mixed outcomes. This area has substantial dairy manufacturing, especially in cheese and butter production, which could gain from the new cheese pricing method focusing on 40-pound cheddar blocks. However, the higher make allowance might stir controversy, potentially cutting farmers’ earnings despite adjustments for rising manufacturing costs.
The future remains uncertain for western New York and most of Pennsylvania’s mountain counties, which any Federal Order does not cover. These areas could feel indirect effects from the new proposals, particularly the revised pricing formulas and allowances, which could impact local milk processing and producer price differentials.
While the higher-of-pricing method may benefit farmers by securing better fluid milk prices, the regional impacts will hinge on each Federal Order’s specific economic activities and market structures. Stakeholders must examine the proposed changes closely to gauge their potential benefits and drawbacks.
The Bottom Line
The USDA’s push to reinstate the ‘higher-of’ pricing method for fluid milk marks a decisive moment for the dairy industry. The 49-day hearing in Indiana underscored the complexity of the Federal Milk Marketing Order (FMMO) System. Key aspects include reverting to the ‘higher-of’ pricing from the 2018 ‘average-of’ formula, new pricing for extended-shelf-life milk, and the debate over increased make allowances. Significant updates to pricing formulas and cheese pricing methodologies were also discussed.
The forthcoming vote on these changes is critical. With the power to reshape financial outcomes for dairy farmers and processors, each Federal Order needs two-thirds approval to implement these changes. Balancing modern dairy policy advancements with fair profits for all stakeholders is at the heart of this discourse.
Ultimately, these decisions will affect dairy practices’ economic landscape and sustainability nationwide. This vote is a pivotal moment in the evolution of the American dairy industry, demanding informed participation from all involved.
Key Takeaways:
Summary:
The USDA plans to reintroduce the ‘higher-of’ pricing method for fluid milk, a move aimed at modernizing federal dairy policy. This method, which selects the higher price between Class III and Class IV milk, could be a significant shift for the dairy industry. The 2018 Farm Bill replaced the ‘higher-of’ system with an ‘average-of’ formula, averaging Class III and IV prices plus an additional 74 cents. This change could benefit farmers but also introduce risks like negative producer price differentials (PPDs). The Federal Milk Marketing Order (FMMO) system ensures fair and competitive dairy pricing, and the ‘higher-of’ method usually leads to higher fluid milk prices but also poses the risk of negative producer price differentials (PPDs). Negative PPDs can impact farmers’ financial stability, making it harder to predict income and manage cash flows. The 24-month rolling adjuster for extended-shelf-life milk introduces further uncertainty, potentially causing fluctuating incomes for farmers. The USDA’s proposal to increase the make allowance, a credit to dairy processors, has been met with criticism from industry leaders. The USDA will open a 60-day public comment period to advance its proposal. The proposed changes to the FMMO system will impact various regions differently due to each Federal Order’s unique economic landscape.
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