# Pricing formula change’s unforeseen outcome skims producer profits | Ag Proud

> An analysis from Perdue AgriBusiness examines how a May 2019 change to the Class I skim milk price calculation reduced producer returns. It explains the two approaches to deriving skim milk prices from Class IV products.

- Date: 2021-03-13 · published 2021-03-13T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/48125-pricing-formula-change-s-unforeseen-outcome-skims-producer-profits-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Changes in US milk pricing formulas affect farm milk returns and therefore dairy herd size and feed demand over time. The article is explanatory with no immediate price shock.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-09-22 | [Changing market conditions don’t quell concern over Class I price formula - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/45216-changing-market-conditions-don-t-quell-concern-over-class-i-price-formula.md) | -0.4% | +7.9% |
| MILK | 2022-05-31 | [Dairy group seeks clarification on milk pricing changes \| Capital Press](https://feedsoft.ai/events/41570-dairy-group-seeks-clarification-on-milk-pricing-changes-capital-press.md) | -2.9% | -3.4% |
| MILK | 2023-10-13 | [Economic Update: Dairy Forward Pricing Program has expired, for now \| Ag Proud](https://feedsoft.ai/events/33771-economic-update-dairy-forward-pricing-program-has-expired-for-now-ag-proud.md) | -0.4% | +1.1% |
| MILK | 2021-12-11 | [What happened? What’s next? - Regulatory changes ahead - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/43753-what-happened-what-s-next-regulatory-changes-ahead-progressive-dairy-ag-proud.md) | -0.6% | +9.0% |
| MILK | 2022-06-02 | [Weekly Digest II: ADC seeks answers on pricing concerns, hearing criteria - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/6239-weekly-digest-ii-adc-seeks-answers-on-pricing-concerns-hearing-criteria.md) | -3.6% | -10.6% |

## Sources

- agproud.com: https://www.agproud.com/articles/35880-pricing-formula-changes-unforeseen-outcome-skims-producer-profits

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