USDA's California milk recommendation, published February 14, 2017, described two linked transactions. Regulated handlers would pay minimum class prices based on how milk is used. Eligible farmers or their cooperatives would receive pooled payments on a uniform or average-price basis. The distinction identifies both the payer and the recipient; it is not a formula for uniform retail prices. [2017-02732]

The proposed order would cover California and use the dairy classifications and pricing provisions of the existing federal order system. Pool participation would still depend on tailored California eligibility standards. Sharing a classification system therefore would not mean that every producer automatically qualified, or that all arrangements for distributing the pool were identical across federal orders. [2017-02732]

USDA's August 6, 2015 hearing notice supplied the earlier set of choices. It described four proposals from interested parties, including some pricing and pooling features not found in current orders. The agency explicitly withheld approval of those proposed provisions. That record explains the recommendation's policy background without turning submitted ideas into adopted requirements. [2015-18704]

The February document remained a proposed rule open to written exceptions until May 15, 2017. It also recognized quota administered by California's agriculture department, including a possible authorized deduction from producer payments. An average-price basis thus cannot be read as identical net receipts. These two USDA documents trace one proceeding, not independent evidence that farm or grocery prices subsequently changed. [2017-02732][2015-18704]

Source documents

  1. Milk in California; Recommended Decision and Opportunity To File Written Exceptions on Proposal To Establish a Federal Milk Marketing Orderhttps://www.govinfo.gov/content/pkg/FR-2017-02-14/html/2017-02732.htm
  2. Milk in California; Notice of Hearing on a Proposal To Establish a Federal Milk Marketing Orderhttps://www.govinfo.gov/content/pkg/FR-2015-08-06/html/2015-18704.htm