AMSFinal Rule
Reauthorization of Dairy Forward Pricing Program
AgricultureFinance & Banking
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Summary
The federal government is renewing a program that helps dairy farmers lock in milk prices ahead of time, similar to how farmers might agree on a price for their crops before harvest. This program helps farmers plan their budgets and reduce financial risk from unpredictable price swings in the dairy market.
Key Points
- 1The Dairy Forward Pricing Program allows dairy farmers to agree on milk prices in advance with buyers, providing more predictable income
- 2The reauthorization extends this program, meaning it will continue operating under the same rules and protections for another set period
- 3This program primarily benefits dairy farmers and milk buyers who want stability, rather than dealing with constantly changing market prices
- 4The program is overseen by the Agricultural Marketing Service (AMS), a branch of the U.S. Department of Agriculture
- 5The rule went into effect in April 2025 and allows the dairy industry to continue using forward pricing agreements
Key Dates
Published
April 23, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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