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Changing market conditions don’t quell concern over Class I price formula

September 21, 2021
Dave Natzke
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.
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Hot summer cools milk production growth

September 20, 2021
Dave Natzke
Hot temperatures and tight income margins cooled U.S. milk production growth in August, as cow numbers dropped and milk per cow slipped into reverse, according to the USDA’s latest Milk Production report, released Sept. 20. At 1.1%, August’s year-over-year milk production increase was the smallest since June 2019-20 (not counting February 2021 and the impact of a leap year).
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In Focus: 2021 cropland values jump but rental rates hold

September 20, 2021
Dave Natzke

Average U.S. agricultural land values and cropland rental rates increased in 2021, according to the USDA’s annual report.


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Senate subcommittee hearing focuses on FMMOs, reforms

September 20, 2021
Dave Natzke
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.
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Progressive Dairy Industry Happenings: September 15, 2021

September 15, 2021
Progressive Dairy provides updates on dairy-related organizations and companies, compiled from staff news sources and industry press releases. Email industry and organization news to Progressive Dairy Editor Jenna Hurty.
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091021-natzke-fmmo-map.jpg

Class III milk flows back in the pool

September 14, 2021
Dave Natzke
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.
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Back to school: Innovative solutions prove dairy is essential to students

September 13, 2021
Julie Sweney
Summer is officially in the rearview mirror, and teachers and kids are back in school. For some, the feeling of being back in the classroom is nearly electric – especially after the turbulent year that was 2020 thanks to COVID-19.
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USDA outlook reduces milk production estimates, forecasts better margins

September 10, 2021
Dave Natzke
The USDA’s latest World Ag Supply and Demand Estimates (WASDE) report, released Sept. 10, reduced both 2021 and 2022 milk production forecasts slightly on expectations of lower cow numbers and slower growth in milk output per cow. Combining slightly stronger milk price projections with declining feed prices, the report suggests dairy income margins should improve off the extremely low levels this summer.
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Economic Update: Milk production growth management plans evaluated

September 8, 2021
Dave Natzke
Update Highlights
  • What if? Milk production growth management plans evaluated
  • DMC: A tale of three risk management levels
  • Global Dairy Trade index shows strength
  • Ag Economy Barometer: Outlook better but clouded by inflation

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U.S. dairy product exports hard to contain

September 7, 2021
Dave Natzke
U.S. dairy exporters continued to overcome logistical challenges in July, moving more products into international markets compared to the same month a year earlier for a sixth consecutive month.
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