E652 USDA Raised Make Allowances Up to 42.6% on Self-Reported Processor Costs

S1E652 - E652 USDA Raised Make Allowances Up to 42.6% on Self-Reported Processor Costs

Published: September 15, 2026

Duration: 28:55

USDA added up to 7.15 cents per pound to processor make allowances on self-reported data. On 500 cows, that pulls up to $105,800 out of your pocket every year.

The Bullvine Podcast breaks down the June 2025 FMMO formula changes that stripped 85 to 92 cents per hundredweight across all four milk classes. While processors secured a 25.8% to 42.6% allowance hike on voluntary numbers, the mandatory audited survey to verify those costs sits stalled in regulatory notice. We run the farm-level math on the $231.9 million net pool revenue drop and examine how cooperative bloc voting passed the cut.

What You'll Learn

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