How are operating costs for Federal Milk Orders financed?

Operating costs for Federal Milk Orders are financed primarily by milk handlers. According to the structure of Federal Milk Marketing Orders, milk handlers include processors, distributors, and marketers who pay for the cost of administering these orders. This system ensures that costs tied to regulatory oversight, market order administration, and other operational functions are covered by those who are directly involved in the handling and marketing of milk within the regulated system.

The funding comes through assessments levied on handlers based on their milk purchases. This structure helps maintain efficient market operations and ensures that the regulatory framework functions effectively to support both producers and consumers in the dairy industry.

Other potential funding sources, such as the government or consumers, do not directly finance these operating costs. Dairy farmers also do not finance these costs directly; rather, they receive price guarantees and support through mechanisms established by the orders that are funded by the handlers. This delineation helps maintain a clear understanding of the responsibilities and roles within the milk marketing framework.