The May USDA Announcement of Class and Component Prices report is indicative of a milk market the U.S. dairy industry has not seen since 2020 as the gap between Class III and Class IV reached $5.40 per hundredweight (cwt), incentivizing depooling in Federal Milk Marketing Orders (FMMOs).

The Federal Milk Marketing Order (FMMO) uniform milk prices rose an average of $1.48 per hundredweight (cwt) from March to April for an average price of $20.03 per cwt across the 11 orders.

At the 2026 Pennsylvania Dairy Summit, Sara Dorland, managing partner at Ceres Dairy Risk Management, shared her insights on the global dairy landscape, dairy markets, the recent Federal Milk Marketing Order (FMMO) price reform and what all of this could mean for dairy producers.

The USDA’s Announcement of Class and Component Prices report for April confirmed the good news buzzing throughout the dairy industry, with prices rising in Class II, III and IV for the fourth straight month in 2026.

Federal Milk Marketing Order (FMMO) uniform milk prices climbed $1.14 per hundredweight (cwt) in March for an average price of $18.55 per cwt across all 11 orders.

Dairy markets continue moving in the right direction as milk class prices improve substantially month over month as recorded in the latest Federal Milk Marketing Order (FMMO) milk class price report.

Federal Milk Marketing Order (FMMO) uniform milk prices rose 40 cents in February from January’s $17 per hundredweight (cwt) to start the new year. The price improvement is due in part to the USDA’s announcement to purchase dairy products for food banks and nutrition assistance programs across the country.

In contrast to the start of last year, U.S. dairy markets are in a far more unsettled place to begin 2026. Dairy farmers are seeing noticeably lower pay prices than this time a year ago.

After a disappointing start to the new year, the milk markets are starting to look better for February based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

By now, the dust has settled on the Federal Milk Marketing Order (FMMO) changes and it is possible to look back on their direct impacts.