
Three months after the June 1 start of the FMMO amendments, farmers have lost more than $337 million in combined pool value. Higher make allowances have reduced Class prices by 85 to 93 cents per cwt.
The article notes that recent price declines may increase the focus on these effects.
The reduction in pool value and farm milk prices lowers producer income and may slow dairy herd investment. Lower milk prices also weigh on dairy by-product values.
After 24 past bearish policy events, Milk (Class III) moved a median -0.1% over 5 sessions (33% higher; middle half -1.8% to +0.5%), and -4.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.