# Negative PPDs to Offset Milk Price Rally | Farm Bureau Intel Markets | American Farm Bureau Federation

> The American Farm Bureau's economist John Newton reports that recent COVID-19-related price volatility and a 2018 farm bill pricing change are likely to produce negative producer price differentials in Federal Milk Marketing Order revenue pools. These negative PPDs are expected to offset $5 to $7 per hundredweight of recent milk price gains for some farmers and prompt large volumes of manufacturing milk to be de-pooled.

- Date: 2020-06-30 · published 2020-06-30T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/52775-negative-ppds-to-offset-milk-price-rally-farm-bureau-intel-markets-american
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Negative PPDs reduce farm-level milk returns even as wholesale dairy prices rally, which can change milk marketing and supply decisions. De-pooling shifts milk out of the pools, affecting how much milk reaches the market and the price farmers actually receive.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-08-05 | [Large Negative PPDs on Milk - AG INFORMATION NETWORK OF THE WEST](https://feedsoft.ai/events/8832-large-negative-ppds-on-milk-ag-information-network-of-the-west.md) | -21.0% | -19.2% |
| MILK | 2025-06-05 | [Federal Milk Marketing Order changes kick in - Brownfield Ag News](https://feedsoft.ai/events/24383-federal-milk-marketing-order-changes-kick-in-brownfield-ag-news.md) | +0.5% | -7.2% |
| MILK | 2017-02-08 | [Back in the pool: DFA seeks flexibility in Northeast federal milk marketing order -  \| Ag Proud](https://feedsoft.ai/events/72655-back-in-the-pool-dfa-seeks-flexibility-in-northeast-federal-milk-marketing.md) | +0.6% | -5.4% |
| MILK | 2025-09-27 | [Milk checks reflect new Federal Order pricing - Dairy Star](https://feedsoft.ai/events/23043-milk-checks-reflect-new-federal-order-pricing-dairy-star.md) | -2.0% | -3.9% |
| MILK | 2018-08-02 | [Is the Milk Margin Protection Program doing enough to help Vt. farmers?](https://feedsoft.ai/events/5860-is-the-milk-margin-protection-program-doing-enough-to-help-vt-farmers.md) | 0.0% | +10.9% |

## Sources

- fb.org: https://www.fb.org/intel/markets/negative-ppds-to-offset-milk-price-rally

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