# Unwrapping USDA’s New Dairy Processing Cost Study and How it Could Impact Make Allowances | Farm Bureau Intel Markets | American Farm Bureau Federation

> USDA released a new dairy processing cost study covering cheese, whey, butter and nonfat dry milk plants, updating the cost inputs used for make allowances. The article explains how these allowances feed into Federal Order milk pricing formulas.

- Date: 2022-03-01 · published 2022-03-01T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/42285-unwrapping-usda-s-new-dairy-processing-cost-study-and-how-it-could-impact-make
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Changes to make allowances alter the milk price formula and therefore farm milk returns, though the direct effect on feed commodity prices is small.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2024-09-04 | [Decoding USDA’s FMMO Recommendations \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/28318-decoding-usda-s-fmmo-recommendations-farm-bureau-intel-markets-american-farm.md) | +12.1% | +13.1% |
| MILK | 2023-08-31 | [Dairy Products Pricing Report Captures Small Portion of Sales Volumes \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/34592-dairy-products-pricing-report-captures-small-portion-of-sales-volumes-farm.md) | -1.5% | -2.6% |
| MILK | 2020-12-15 | [More Negative PPDs and De-Pooling Reignite Federal Milk Marketing Order Debate \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/49805-more-negative-ppds-and-de-pooling-reignite-federal-milk-marketing-order-debate.md) | -0.9% | +3.0% |
| MILK | 2023-11-29 | [Milk Price Differentials Long Overdue for an Update \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/33313-milk-price-differentials-long-overdue-for-an-update-farm-bureau-intel-markets.md) | -4.7% | -5.9% |
| MILK | 2024-11-14 | [USDA Agricultural Service Releases Federal Milk Marketing Order Decision - Dairy Producer](https://feedsoft.ai/events/27406-usda-agricultural-service-releases-federal-milk-marketing-order-decision-dairy.md) | -0.3% | -6.0% |

## Sources

- fb.org: https://www.fb.org/intel/markets/unwrapping-usdas-new-dairy-processing-cost-study-and-how-it-could-impact-make-allowances

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