Milk pricing - Articles - Page 26

The missing 39%: Is it a concern?

While many aspects of Federal Milk Marketing Orders are being scrutinized, a third important issue – an increasing percentage of milk marketed outside the regulated system – is receiving less attention.

September 9, 2022

Erick Metzger

As you attend industry functions this fall and FMMO issues are discussed, be sure to ask if the missing 39% is a concern – and if so, what is being proposed to address that concern.

DMC margin continued to shrink in July

The July DMC margin is $9.92 per cwt, down $2 from June but still above the indemnity payment trigger.

September 2, 2022

Dave Natzke

Milk prices declined and feed costs continued to rise in July, cutting into monthly dairy producer milk income over feed cost margins calculated under the Dairy Margin Coverage (DMC) program.

August FMMO class prices drop but Class IV-Class III gap widens

August 2022 FMMO pooling estimates, uniform prices and producer price differentials are scheduled to be released on Sept. 11-14.

August 31, 2022

Dave Natzke

A widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class milk prices ensures there’s even more incentive to depool Class IV milk.

May all-milk, mailbox price spread averaged 98 cents

The difference in the two announced prices can affect dairy risk management, since indemnity payments under the Dairy Margin Coverage (DMC), Dairy Revenue Protection (Dairy-RP) and Livestock Gross Margin for Dairy (LGM-Dairy) programs are all based on the all-milk price.

August 29, 2022

Dave Natzke

May 2022 “mailbox” prices averaged about 98 cents per hundredweight (cwt) less than announced average “all-milk” prices for the same month.

September 2022 Class I base price ‘moves’ to $23.62 per cwt

August 23, 2022

Dave Natzke

September’s Federal Milk Marketing Order (FMMO) advanced Class I base price will hit a six-month low, while likely escalating producer irritation over the 2019 “Class I mover” formula change.

What happened What's Next: NMPF lays out FMMO modernization timeline

August 22, 2022

Dave Natzke

The National Milk Producers Federation (NMPF) is updating members on the organization’s activities regarding potential Federal Milk Marketing Order (FMMO) reforms. NMPF hosted three webinars and a large-scale summit in July.

Milk price plateau cuts into June DMC margin

August 18, 2022

Dave Natzke

Milk prices plateaued but feed costs continued to rise in June, cutting into monthly dairy producer milk income over feed cost (IOFC) margins calculated under the Dairy Margin Coverage (DMC) program.

Weekly Digest: Summer repeat: July Class IV milk price stays strong, adding to depooling incentives

August 18, 2022

Dave Natzke

Digest highlights

Summer repeat: July Class IV milk price stays strong, adding to depooling incentives
FarmFirst Dairy Cooperative hosting FMMO webinar, Aug. 11
AFBF sets FMMO Forum in Kansas City, Oct. 14-16
Podcast covers Edge dairy policy priorities
‘Healthy Meals, Healthy Kids Act’ advances out of committee
Hearing planned on Pennsylvania ‘over-order’ premium
Southeast Milk selects Dyal as CEO
Tillamook announces ‘climate action’ plan
Borden closing two more Southeast plants
Organic Valley adds 51 Northeast farms
Dairy adds to call for ag workforce reform bill

USDA raises 2022-23 milk production forecasts, putting a dent in price projections

August 15, 2022

Dave Natzke

The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report, released Aug. 12, 2022, revised 2022-23 U.S. milk production estimates higher due to larger cow inventories and increases in milk output per cow.