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September 2021 milk marketings through Federal Milk Marketing Orders (FMMOs) extended summer-long trends resembling 2019 and pre-pandemic 2020. With a few exceptions, Class III milk pooling was more consistent, and producer price differentials (PPDs) were smaller but mostly positive. Unfortunately for producers, milk prices couldn’t shake their summer blues.
Basis is a very important number. It can be a metric used to determine your likelihood of profitability. It will tell you how your sales are priced compared to another processor. Even though dairy farmers today do not have much option to pick and choose where their milk is sold, basis is a number you should know.
Editor’s note:This article has been updated from the original to include additional comments from the American Dairy Coalition.
As calls for reforms to the Federal Milk Marketing Order (FMMO) system grow louder, one “hot button” issue remains under fire. At least one dairy organization wants to keep producer pressure on that issue to ensure a long-term equitable outcome.
With eyes on potential reform, several dairy producers and industry representatives told a Senate Ag Committee subcommittee that it’s time to take a comprehensive review of the Federal Milk Marketing Order (FMMO) system.
August 2021 Federal Milk Marketing Order (FMMO) administrator reports indicate Class I-Class III milk price inversions have ended for now, Class III milk depooling has subsided, and producer price differentials (PPDs) have stayed positive for a third straight month.
Federal Milk Marketing Order (FMMO) August 2021 Class III and Class IV milk prices were announced Sept. 1. Both were again lower than the previous month, and the gap between the two almost disappeared.
Editor's note:The USDA's Agricultural Marketing Service has posted additional information covering the Pandemic Market Volatility Assistance Program for Dairy. Milk handlers and dairy cooperatives whose producers are eligible to receive payments will be notified the week of Aug. 23. The USDA will host an information webinar for eligible handlers and cooperatives who will need to indicate intentions to participate by Sept. 10.
The USDA has released some details of a $350 million Pandemic Market Volatility Assistance Program, providing targeted financial assistance to U.S. dairy producers. Progressive Dairy will provide additional details as they become available.
