The USDA has approved changes to the formulas for Class I, II, III, and IV producer milk. They are now being reviewed by the Federal Orders. If approved, the new formulas will be used for future calculations of the value of producer milk. If not approved by the Federal Order, the Order will be disbanded.
The three prior posts, listed below covered the impact on Class III milk, the largest share. Class IV milk, and Class I milk.
Prior to 2019, Class I skim milk was priced by the “higher of” Class III skim or Class IV skim. Since 2019, the Class I skim has been priced based on the “average of“ Class III skim and Class IV skim plus $.74. The USDA changes will return the pricing formula to the “higher of“ calculation.
USDA Rule Change to Federal Order Pricing – Part I – Class III milk – Milk for cheese
USDA Rule Change to Federal Order Pricing – Part II – Class IV milk – Milk for butter
USDA Rule Change to Federal Order Pricing – Part III – Class I milk – Milk for drinking
This post summarizes the changes for all Classes of Milk.
Below is Chart I which compares the percent for producer milk by Class. The use of Federal Order milk for cheese is by far the largest category with 54% of the total volume. Class I is next with 26% and Classes II and IV are smaller with 9% and 11%.
Some publications have stated that the USDA changes will financially benefit producers. That is not true. Producers in the Federal Orders will be paid less as the new formulas are implemented. The changes now approved by the USDA are the most sweeping changes ever approved. Typically, only “make allowances” are changed. The current changes cover much more.
The data used for the calculations in this post is based on 2023 volumes, prices, and component levels. The two tables below cover both the changes to the index formulas which use standardized levels of components (TABLE I), and the actual revenue changes that will occur for producer payments (TABLE II).
INDEX PRICES
No producer is paid by the index prices published monthly. The index prices use a consistent level of components and standardized formulas to track the impact on producer milk as wholesale dairy product prices fluctuate.
The changes in index prices (TABLE I below) show almost no change in revenue for Class I and Class II milk. Butterfat becomes worth less with a higher “make allowance” and skim milk increases in value by using the “higher of” Class III or Class IV instead of the current averaging method.
Class III milk has a small negative impact of just -$.13 per cwt. as butterfat and “other solids” value is less with the increased “make allowances.” However, the Class III formula will increase and offset most of the losses by using a skim protein level of 3.3% as opposed to 3.1% in the current formulas. This does make comparisons to historical index prices incomparable.
No changes in butterfat component levels are made in the USDA changes, and it will remain at 3.5% even though current butterfat levels are above 4%.
Class IV milk for butter will be worth significantly less by $-.58 per cwt. Butterfat will be lower due to the higher “make allowances,” which impact all Classes of milk equally. The impact of the “milk allowance” of nonfat dry milk has a very significant increase of 43%, increasing from $.1678 per pound to $.2393 per pound which lowers the producer revenue for skim milk in Class IV. The changing pricing technique used for Class III milk protein is used in Class IV to increase nonfat solids to 9.3% from 9% of skim milk in the index formulas. The negative impact of the “make allowance” far outweighs of the impact of increasing the level of nonfat solids. As mentioned above, the change in the level of “nonfat solids” makes comparisons to historical data incompatible.
ACTUAL REVENUE PRICES
Chart III covers the actual impact of the changes on producer revenue. The difference is in the actual component levels which are measured with every load of milk. All classes are now showing lower prices. The weighted average represents the statistical uniform price used for producer payments.
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I have been suffering from Herpes for the past 1 years and 8 months, and ever since then i have been taking series of treatment but there was no improvement until i came across testimonies of Dr. UMA on how he has been curing different people from different diseases all over the world, then i contacted him as well. After our conversation he sent me the medicine which i took according .to his instructions. When i was done taking the herbal medicine i went for a medical checkup and to my greatest surprise i was cured from Herpes. My heart is so filled with joy. If you are suffering from Herpes or any other disease you can contact Dr. UMA today on this Email address: dr.umaherbalcenter@gmail.com or whatsapp +2347035619585.
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I contracted Herpes Simplex Virus at 37. I’d never had penetrative sex, and when I didn’t want to ‘go all the way’, I felt pressured to give and receive oral sex. The boy suffered from HSV and didn’t know he could infect me that way. I was traumatized for years afterward, and articles like these remind me of that burning shame and how I was able to get rid of herpes with herbal products from medical herbal center. which I have used for 8 weeks. It got rid of my HSV after 3 months, so I went to do the test and my doctor to me and negative for HSV. Madiba herbal center. has a 100% cure for HSV, I swear. The have given great relief to patients suffering from all types of diseases including : Email him via: Herbalistdoctoramos@gmail.com or Text/Call: WHATSAPP:+2349064159687
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8. Bronchitis
9. Asthma
10.Acute angle-closure Glaucoma
11.ATRIAL FIBRILLATION
12.CHF
13.Cancer
14.Diabetes
15 Ankylosing Spondylitis
16.CREST Syndrome
17.Acid Reflux
18.Restrictive Lungs Disease
19.Crohn’s Disease
20. Alzheimer’s Disease
21.Stiff Person Syndrome (SPS)
22.Fibromyalgia
23.Bronchiectasis
24.HPV virus
25.Multiple Sclerosis (MS)
I can recommend. Because he heals
People with herbs 💯%
For so many years now he have been curing dangerous types of diseases. Just with herbs that don’t have any effects to the body. Those herbs cured diseases from the blood. I am so much grateful that I have been cured from the Herpes disease. Contact him on WhatsApp +2349023492882 or
email drederibhalo@gmail.com
facebook page https://www.facebook.com/profile.php?id=100089619710527&mibextid=ZbWKwL
I can recommend. Because he heals
People with herbs 💯%
For so many years now he have been curing dangerous types of diseases. Just with herbs that don’t have any effects to the body. Those herbs cured diseases from the blood. I am so much grateful that I have been cured from the Herpes disease. Contact him on WhatsApp +2349023492882 or
email drederibhalo@gmail.com
facebook page https://www.facebook.com/profile.php?id=100089619710527&mibextid=ZbWKwL.
My husband and I have been infected with HPV although I was the coursed I cheated on my husband it was when I contracted the virus for the pasted 3 years this has been a deeply situation so embarrassed every-time I looked at my self I just pissed off the virus was getting over my life. just to make the story short, few weeks ago I found a herbalist Dr. online who has cured Hpv patients with 100% excellent result and I inquire the treatment me and my husband taking it for two weeks and we got cured I just want to use this medium to thanks Dr iyare for his wonderful treatment he so-much saved us out from this virus. his information been attached to my post you can reach out to him via, WhatsApp number +2349037482568 . or email dr.iyare22@gmail.com He is capable of curing HIV/AIDS, HERPES, HPV, HSV1&2, CANCER of all kinds, DIABETES and so many other infections. I’m so glad I found dr iyare
My journey began 17 years ago when I was diagnosed with ulcerative colitis. I’m the first and only member of my family with an autoimmune disease. I struggled for many years and nearly lost hope—until I found Dr. Iyare on Google. He prepared a herbal medicine for me, and the relief I felt is beyond words. I am totally okay now, thanks to Dr. Iyare. I’m sharing my story in case anyone is interested in his services. He says he also treats HPV, HSV, ALS, diabetes, cancer, vitiligo, hepatitis B, Parkinson’s, and more. Contact: Email: dr.iyare22@gmail.comWhatsApp: +234 903 748 2568