
USDA published its final decision on federal milk marketing order reform, and all 11 orders approved the changes. Barrel cheddar will be removed from pricing formulas in June 2025, butterfat recovery in Class III will rise to 91%, and the Class I mover will return to the higher of Class III or Class IV skim.
The formula changes will alter how milk is priced across regions from June 2025, with a mixed effect on farm milk values. Buyers should watch the Class I and Class III adjustments.
After 93 past neutral policy events, Milk (Class III) moved a median -0.0% over 5 sessions (48% higher; middle half -0.6% to +0.6%), and +0.2% 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.