An economist with the American Farm Bureau Federation (AFBF) says recently approved changes to the federal milk marketing orders will affect dairy producers’ profitability.
Danny Munch says the newly updated system that regulates minimum payments to dairy producers will be a win for some, but not for others.
“Overall, if you’re in an order or region of the country with high Class 1 utilization, or have high fluid milk utilization, you will end up better off under this new rule,” he says.
He tells Brownfield those would be orders such as the northeast and southeast, but Munch says orders like the Upper Midwest and California saw a detrimental increase in make allowances.
Munch says the changes go into effect this June. He says AFBF is supporting legislation that would require make allowance changes to be based only on mandatory USDA surveying.
Brownfield spoke with Munch at the 2025 Illinois Dairy Summit in Carlyle.
AUDIO: Danny Munch – AFBF
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