Dairy Forward Pricing Program Gets Three-Year Extension Boost
Published Date: 2/27/2026
Rule
Summary
The Dairy Forward Pricing Program just got a fresh green light! Milk handlers can now sign new forward contracts until September 30, 2026, and any contract made by then lasts until September 30, 2029. This means dairy producers and handlers get more time and flexibility to lock in prices and plan ahead without surprises.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
New Forward Contracts Allowed Through 2026
If you are a dairy producer, cooperative, or handler, you (or handlers) may enter new Dairy Forward Pricing Program (DFPP) contracts through September 30, 2026. Any forward contract entered by that deadline may not extend beyond September 30, 2029.
Contract Filing and Disclosure Requirements
Regulated handlers claiming exemption from Federal order minimum pricing must submit a copy of each forward contract to the Market Administrator, and each contract must include a disclosure statement (as part of the contract or as a supplement). Contracts without a disclosure statement are deemed invalid and returned. Signed contracts must be received by the Market Administrator before the first of a month to be effective for that month (for example, received by December 31, 2025 to be effective January 2026). Payments under a forward contract must be made on or before the same date as the Federal milk marketing order payments they replace.
DFPP Extended to All Federal Milk Orders
This final rule extends the Dairy Forward Pricing Program to all Federal Milk Marketing Orders (FMMOs). Handlers operating under any FMMO may use the program consistent with its terms and deadlines.
No Forward Contracting for Fluid Milk
The DFPP does not allow forward contracting for Class I (fluid) milk. The program only permits forward contracts for non‑fluid classes of milk (Classes II, III, and IV under the Federal Milk Marketing Order system).
Participation Is Voluntary; No Coercion Allowed
Participation in the DFPP is voluntary for dairy farmers, cooperatives, and handlers. Handlers may not require producer participation in a forward pricing program as a condition for accepting milk.
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