Report on The USDA's Reporting Procedures for Nonfat Dry Milk
Published : Dec 2008
Authors : USDA, Secretary of Agriculture
Using industry reports, USDA’s National Agricultural Statistics Service (NASS) compiles and publishes weighted average prices and associated sales volumes of specified dairy products. This information is used by the Agricultural Marketing Service (AMS) to establish minimum values for milk under the Federal Milk Marketing Order program. In April, 2007, an error was identified in industry-reported information that affected published prices for nonfat dry milk. As a result, NASS published revisions to the weekly nonfat dry milk price for the weeks of April 29, 2006 to April 14, 2007. The AMS determined that calculations based on these revisions indicated a loss to producers of approximately $50 million. An interim final rule was published in the Federal Register on July 3, 2007 (72 FR 36341), establishing the Dairy Product Mandatory Reporting Program and a Verification process as required by law. The rule became effective on August 2, 2007. This program is carried out jointly by NASS and AMS. AMS began performing verifications on August 6, 2007. AMS completed the rulemaking process, after two public comment periods, by publishing the final rule in the Federal Register on June 17, 2008 (73 FR 34175). The final rule adjusted ambiguous reporting specifications and addressed program issues arising after the implementation of the interim final rule. The final rule became effective on June 22, 2008. The USDA’s Office of the Inspector General issued an audit report containing recommendations for action. All actions have now been completed.

