# Dairy economist expects offsets to new higher FMMO make allowances  - Brownfield Ag News

> Dairy economist Marin Bozic expects more milk to be pooled once new federal milk marketing order rules take effect, since higher make allowances give processors incentive to pool milk. USDA's changes were approved by producer referendum in January and take effect June 1, with skim milk composition changes on December 1.

- Date: 2025-01-29 · published 2025-01-29T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/26665-dairy-economist-expects-offsets-to-new-higher-fmmo-make-allowances-brownfield
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Pricing formula changes shift how dairy revenue is distributed between processors and producers, but the immediate impact on milk prices is modest and mostly structural.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-09-17 | [FMMO facelift long overdue - Brownfield Ag News](https://feedsoft.ai/events/45217-fmmo-facelift-long-overdue-brownfield-ag-news.md) | -0.4% | +7.9% |
| MILK | 2022-03-01 | [Unwrapping USDA’s New Dairy Processing Cost Study and How it Could Impact Make Allowances \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/42285-unwrapping-usda-s-new-dairy-processing-cost-study-and-how-it-could-impact-make.md) | +8.1% | +7.1% |
| MILK | 2024-02-26 | [DMC enrollment to commence as USDA expects higher milk prices in 2024](https://feedsoft.ai/events/5462-dmc-enrollment-to-commence-as-usda-expects-higher-milk-prices-in-2024.md) | +3.9% | +1.7% |
| MILK | 2018-05-02 | [May dairy economic update: MPP-Dairy can provide guaranteed payments, positive program cash flow at highest margin -  \| Ag Proud](https://feedsoft.ai/events/5127-may-dairy-economic-update-mpp-dairy-can-provide-guaranteed-payments-positive.md) | +5.1% | +4.5% |
| MILK | 2017-05-26 | [Economic analysis shows California FMMO  is positive for most dairy producers - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/71155-economic-analysis-shows-california-fmmo-is-positive-for-most-dairy-producers.md) | +5.8% | +4.7% |

## Sources

- brownfieldagnews.com: https://brownfieldagnews.com/news/dairy-economist-expects-offsets-to-new-higher-fmmo-make-allowances/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.