# Why Class III and Class IV Prices Have Diverged in Early 2026: What the NFDM Rally Means for Wisconsin Cheese Route Producers – Farm Management

> A Wisconsin Extension analysis explains why Class IV milk prices rose well above Class III in early 2026, with Class IV at $18.94/cwt and Class III at $16.16/cwt in March. The divergence is traced to a sharp nonfat dry milk rally and a shift in skim milk use toward ultrafiltration and high-protein products. The article also notes that Class IV strength does not translate directly into higher pay prices for cheese-route producers.

- Date: 2026-05-13 · published 2026-05-13T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/19416-why-class-iii-and-class-iv-prices-have-diverged-in-early-2026-what-the-nfdm
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Tighter nonfat dry milk supply lifts Class IV values, but Wisconsin cheese-route producers priced off Class III see a smaller benefit, so farm-gate milk checks lag the headline Class IV gains.

## Read by commodity

- MILK: bullish ▲

## Sources

- farms.extension.wisc.edu: https://farms.extension.wisc.edu/articles/why-class-iii-and-class-iv-prices-have-diverged-in-early-2026-what-the-nfdm-rally-means-for-wisconsin-cheese-route-producers/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.