E123 USDA’s New Milk Pricing Rules: What Dairy Farmers Need to Know

The USDA has introduced new changes to the Federal Milk Marketing Orders, starting in June 2025. These updates, focusing on skim milk content and manufacturing costs, aim to make pricing fairer and clearer. Some groups, like the American Farm Bureau Federation, worry these changes might lower what farmers earn. Regions also worry about fair pay differences across states. “These changes try to make things fair,” said a Midwest Dairy Association representative, “but it might not work as intended.” The changes were made after long discussions in the industry and will roll out in phases, with some starting in June 2024 and others delayed until December 2025. Overall, the USDA aims for more stable pricing, but there’s a call to review financial impacts to ensure fairness throughout the industry.