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The NMPF reported that the Final Rule updating Federal Milk Marketing Order pricing formulas took effect June 1. Changes include restoring the higher-of Class I mover, updating make allowances and differentials, and removing barrel cheese from the Class III formula.
Composition factor increases were delayed until December.
Higher make allowances shift value from farm milk checks to processors, which may trim producer income and modestly reduce dairy herd expansion incentives.
nmpf.orgTheresa SweeneyJun 2, 2025After 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.
