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Industry participants are discussing improvements to the Federal Milk Marketing Order system after pandemic-era volatility. Proposals include simplifying pricing to remove negative producer price differentials and aligning Class I and Class III/IV timing.
Changes to the make allowance, possibly indexed annually, are also under consideration. A merger between Dairy Farmers of America and Dean Foods was cited as a factor that could affect many farmers.
Pricing reform could change how milk checks are calculated and make dairy hedging easier for producers. Any effect on prices would come only after formal rule changes.
capitalpress.comCAROL RYAN DUMASCapital PressApr 20, 2021After 147 past policy events, MILK moved a median -0.1% over 5 sessions (46% higher; middle half -1.0% 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.
