# Economic Update: Dairy Forward Pricing Program has expired, for now | Ag Proud

> The USDA Dairy Forward Pricing Program authority expired on October 1, 2023, after Congress failed to pass a 2023 Farm Bill, so new forward contracts are no longer exempt from minimum milk pricing. High interest rates and a strong dollar are also weighing on rural and agricultural economies, according to CoBank.

- Date: 2023-10-13 · published 2023-10-13T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/33771-economic-update-dairy-forward-pricing-program-has-expired-for-now-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expiry of the forward pricing exemption may raise handler costs and affect milk supply contracting, while a strong dollar weighs on US dairy export competitiveness.

## Read by commodity

- DXY: bullish ▲
- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2018-05-02 | [May dairy economic update: MPP-Dairy can provide guaranteed payments, positive program cash flow at highest margin -  \| Ag Proud](https://feedsoft.ai/events/5127-may-dairy-economic-update-mpp-dairy-can-provide-guaranteed-payments-positive.md) | +5.1% | +4.5% |
| MILK | 2017-05-26 | [Economic analysis shows California FMMO  is positive for most dairy producers - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/71155-economic-analysis-shows-california-fmmo-is-positive-for-most-dairy-producers.md) | +5.8% | +4.7% |
| MILK | 2025-06-19 | [Economic Update: July’s Class I base milk price climbs to $18.82 per cwt \| Ag Proud](https://feedsoft.ai/events/24219-economic-update-july-s-class-i-base-milk-price-climbs-to-18-82-per-cwt-ag-proud.md) | +0.5% | -6.5% |
| MILK | 2020-02-12 | [Weekly Digest: California quota program sunset proposal forwarded to CDFA - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/54736-weekly-digest-california-quota-program-sunset-proposal-forwarded-to-cdfa.md) | -0.4% | -4.2% |
| MILK | 2021-06-11 | [What happened? What’s next? - Is the market fixing itself? - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/46753-what-happened-what-s-next-is-the-market-fixing-itself-progressive-dairy-ag-proud.md) | +0.5% | -2.0% |
| DXY | 2020-10-29 | [Brexit Progress Supports Pound Sterling against Euro and Dollar in a Stormy Market](https://feedsoft.ai/events/50877-brexit-progress-supports-pound-sterling-against-euro-and-dollar-in-a-stormy.md) | -0.5% | -2.2% |
| DXY | 2021-12-10 | [FX Daily: PBOC back in the (FX) game \| articles \| ING THINK](https://feedsoft.ai/events/11299-fx-daily-pboc-back-in-the-fx-game-articles-ing-think.md) | -0.1% | -0.5% |
| DXY | 2018-02-07 | [U.S. Dollar Rises Following Budget Agreement - WSJ](https://feedsoft.ai/events/12001-u-s-dollar-rises-following-budget-agreement-wsj.md) | +0.2% | +0.7% |

## Sources

- agproud.com: https://www.agproud.com/articles/58491-economic-update-dairy-forward-pricing-program-has-expired-for-now

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