Dairy farmers in all 11 Federal Milk Marketing Orders will soon be receiving ballots for a referendum on long sought reforms to the FMMO system — which sets minimum prices for milk.

USDA’s recommendations were issued on July 1 and have been widely reported on and discussed by industry groups.

The changes include:

• A return to the previous formula to set the base price for most Class I milk (fluid consumption).

• An increase in Class I differentials (the costs to get milk to those markets).

• An update to milk composition factors (the level of protein and other solids in milk).

• An increase in “make allowances” (manufacturing costs, which are deducted from the price farmers receive for their milk).

USDA has held three webinars to explain the amendments, answer questions and clarify how the referendum works, emphasizing the following:

• USDA will simultaneously conduct a separate referendum in each marketing order.

• A referendum vote is a “yes” or “no” vote on the entire order as it is proposed to be amended.

• Producers cannot vote on individual proposed amendments, and producers cannot elect for the order to remain as is.

• A majority “no” vote would result in USDA initiating steps to terminate the order.

• A majority “yes” vote indicates support of the order as proposed to be amended.

• Producers who had milk pooled on an FMMO during January 2024 are considered eligible to vote in the referendum.

• A dairy producer must be actively engaged in dairy farming at the time ballots are sent and received in order to be eligible.

• Each eligible producer is entitled to one vote. Block voting is allowed for a qualified cooperative to vote on behalf of its eligible producer members.

• A block vote is the entire co-op’s eligible membership, voting as one with each eligible producer member counted in the tally.

• If a cooperative decides not to block vote, the referendum agent will directly mail a ballot and associated documents to all members of the cooperative who are eligible to vote.

• For producers who are not members of a cooperative, the referendum agent will issue and mail a ballot to each eligible individual producer, along with information on how to cast the ballot.

• All ballots must be postmarked by Dec. 31 and received by Jan. 15 to be included in the vote tally.

• If a ballot is not postmarked and received by these dates, it will be disqualified, and will not be included in the referendum count.

• A ballot must be signed, or it will be disqualified.

• Ballots cannot be emailed or faxed.

• If a producer submits a ballot, and USDA determines that producer was ineligible to vote in the referendum, the ballot will be disqualified.

• For each order, approval is granted if ballots are cast in favor either by at least two-thirds of the eligible producers voting in the referendum or by producers who supplied more than two-thirds of the milk volume represented in the referendum.

• The milk volume represented in the referendum is milk that was pooled on the FMMO during January 2024.