# Make allowances and milk prices | Dairy Processing

> An article on Federal Milk Marketing Order make allowances, the assumed processing costs used in milk pricing formulas, says these allowances have not changed in 17 years despite rising costs. The industry is working to update them. The article notes that higher make allowances lower the minimum milk prices farmers receive.

- Date: 2023-11-28 · published 2023-11-28T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/6754-make-allowances-and-milk-prices-dairy-processing
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Raising make allowances would lower the regulated minimum milk price, so farm milk income is at stake in the rulemaking. Any change would be a structural shift in how milk prices are calculated.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2020-04-10 | [Pandemic Weakening Milk Prices; Industry Calls for Policy Action - EveryCRSReport.com](https://feedsoft.ai/events/53641-pandemic-weakening-milk-prices-industry-calls-for-policy-action-everycrsreport.md) | -1.1% | -14.8% |
| MILK | 2020-04-07 | [Mielke: Dairy industry calls for help \| Capital Press](https://feedsoft.ai/events/5746-mielke-dairy-industry-calls-for-help-capital-press.md) | -1.7% | -16.9% |
| MILK | 2023-09-26 | [Milk, cheese prices fall while USDA, industry discuss proposals - Brownfield Ag News](https://feedsoft.ai/events/34251-milk-cheese-prices-fall-while-usda-industry-discuss-proposals-brownfield-ag-news.md) | -0.2% | -8.5% |
| MILK | 2024-11-25 | [“By The Middle Of Next Year, Expansions To US Cheese Processing Are Expected To Boost Cheese Output By Nearly 20 Million Pounds Per Day." - EDairy News English](https://feedsoft.ai/events/27554-by-the-middle-of-next-year-expansions-to-us-cheese-processing-are-expected-to.md) | -0.1% | -6.1% |

## Sources

- dairyprocessing.com: https://www.dairyprocessing.com/articles/2070-make-allowances-and-milk-prices

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