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The American Farm Bureau examines a widening spread between block and barrel cheese prices since 2017, which has reduced dairy farm revenue under current federal milk pricing formulas. The commentary argues the pricing system was not designed for this divergence.
The pricing distortion affects how milk checks are set, but it does not directly shift overall dairy supply or demand for feed ingredients.
fb.orgJohn Newton, Ph.D.Sep 4, 2019After 147 past policy events, Milk (Class III) 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.
