# Large Negative PPDs on Milk - AG INFORMATION NETWORK OF THE WEST

> Data from USDA AMS showed negative producer price differentials across the seven multiple-component pricing orders totaled -$528 million in June 2020, the largest in California. Mass de-pooling of milk and a 2018 farm bill formula change contributed to the record negative PPDs.

- Date: 2020-08-05 · published 2020-08-05T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/8832-large-negative-ppds-on-milk-ag-information-network-of-the-west
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Record negative PPDs lower the effective farm-gate milk price and signal disruption in the pool, which can reduce dairy herd size and feed buying over time.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-06-30 | [Negative PPDs to Offset Milk Price Rally \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/52775-negative-ppds-to-offset-milk-price-rally-farm-bureau-intel-markets-american.md) | +11.9% | +16.6% |
| MILK | 2020-09-23 | [2020 Negative PPD challenges snowballing - Brownfield Ag News](https://feedsoft.ai/events/51131-2020-negative-ppd-challenges-snowballing-brownfield-ag-news.md) | +0.5% | +31.9% |
| 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 | 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% |
| MILK | 2025-01-18 | [USDA Announces June 1 Implementation of New FMMO Formulas](https://feedsoft.ai/events/26671-usda-announces-june-1-implementation-of-new-fmmo-formulas.md) | -0.0% | +0.1% |

## Sources

- aginfo.net: https://www.aginfo.net/report/46701/Idaho-Ag-Today/Large-Negative-PPDs-on-Milk

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