Federal Milk Marketing Reform Act of 2005

The Federal Milk Marketing Reform Act of 2005 (S. 869) sought to change how the federal government determines the minimum price for fluid milk (Class I milk). Under the proposed rules, the Secretary of Agriculture would have been prohibited from using distance or transportation costs from outside a specific region to set local milk prices, unless that outside region provided a significant amount of milk to the area.

For everyday citizens, this bill aimed to modernize the pricing system to better reflect local supply and demand rather than relying on outdated geographic formulas. By limiting "single base point pricing," the legislation intended to create a more equitable market for dairy farmers in different parts of the country, which could ultimately influence the stability of milk prices at the grocery store.