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The University of Wisconsin extension analysis reviews USDA AMS's final decision to amend pricing formulas for all 11 FMMOs, following a 49-day hearing and a producer referendum. It highlights faster skim milk composition implementation, a new marketing cost factor, nonfat dry milk make allowance changes, and Class I differential modifications.
The details of make allowance and formula changes determine how milk prices are calculated, affecting producer returns and dairy price outlooks once implemented.
farms.extension.wisc.eduLeonard PolzinFeb 1, 2025After 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.
