◂ Event Timeline

Jan 13, 2021POLICYUS

Food Box cheese-buying splurge sparks debate over dairy policy

Cheese demand surged after the Food Box program launched, while fluid and butter prices stayed relatively low. Many producers missed the gains because of federal milk marketing order pricing rules and a 2018 farm bill change, which the American Farm Bureau estimates cost $3 billion.

WHY IT MATTERS

Pricing rule changes keep dairy revenue uneven even when cheese prices rally, and a possible policy revision could shift milk values. Continued Food Box purchases are expected to keep cheese demand firm.

AFFECTSMilk (Class III)◆

SOURCE
agri-pulse.comPhilip BrasherJan 13, 2021

Price reaction & history

Milk (Class III)◆neutralSO FAR1d -0.5%5d -1.3%20d -5.5%

After 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.

Jun 29, 2022Dairy industry divides over pricing policy ahead of farm bill | 2022-06-28 | Agri-Pulse Communications, Inc.-8.0%
Dec 19, 2017Disaster bill adds cotton to farm bill | 2017-12-18 | Agri-Pulse | Agri-Pulse Communications, Inc.-0.6%
Jan 24, 2018[Article Headline] | 2018-01-23 | Agri-Pulse | Agri-Pulse Communications, Inc.-0.1%
Feb 9, 2018Congress clears budget deal, farm aid after shutdown | 2018-02-09 | Agri-Pulse | Agri-Pulse Communications, Inc.-0.1%
Feb 27, 2019Perdue sets signup goals for farm bill | 2019-02-27 | Agri-Pulse | Agri-Pulse Communications, Inc.+8.5%

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.

Milk (Class III) MILK · GP ▸

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