# Milk checks reflect new Federal Order pricing - Dairy Star

> Under new Federal Milk Marketing Order rules, make allowances for processors rose to 23-27 cents per pound from 5-7 cents, cutting the milk price in Class III and IV formulas. Upper Midwest producers, whose regions are heavy with cheese plants, are seeing mailbox prices lower than before the changes. Three of the seven formula updates take effect Dec. 1.

- Date: 2025-09-27 · published 2025-09-27T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/23043-milk-checks-reflect-new-federal-order-pricing-dairy-star
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Higher make allowances lower the minimum farm milk price, reducing dairy producers' margins and potentially their herd and feed-buying capacity. The effect is a sustained cut in milk value rather than a short-term price shock.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2025-06-05 | [Federal Milk Marketing Order changes kick in - Brownfield Ag News](https://feedsoft.ai/events/24383-federal-milk-marketing-order-changes-kick-in-brownfield-ag-news.md) | +0.5% | -7.2% |
| MILK | 2023-04-14 | [Initiating Federal Order Reform - Cheese Reporter](https://feedsoft.ai/events/36570-initiating-federal-order-reform-cheese-reporter.md) | -0.1% | -12.8% |
| MILK | 2017-02-08 | [Back in the pool: DFA seeks flexibility in Northeast federal milk marketing order -  \| Ag Proud](https://feedsoft.ai/events/72655-back-in-the-pool-dfa-seeks-flexibility-in-northeast-federal-milk-marketing.md) | +0.6% | -5.4% |
| MILK | 2023-11-28 | [Make allowances and milk prices \| Dairy Processing](https://feedsoft.ai/events/6754-make-allowances-and-milk-prices-dairy-processing.md) | -5.8% | -6.1% |
| MILK | 2020-06-30 | [Negative PPDs to Offset Milk Price Rally \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/52775-negative-ppds-to-offset-milk-price-rally-farm-bureau-intel-markets-american.md) | +11.9% | +16.6% |

## Sources

- dairystar.com: https://dairystar.com/stories/milk-checks-reflect-new-federal-order-pricing,29767

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