October 22, 2021: What’s in Your Milk Check?

Extreme volatility has hampered dairy farmers across the nation for over a year and a half. However, that volatility has decreased in recent months and Class III and IV milk prices are trading in  more normal ranges. This means that the Class I milk price change implemented in May 2019 will be a net benefit to milk checks across the country, including Pennsylvania, because the average of Class III and IV plus 74 cents is more than the higher of Class III or IV if they continue to trade within $1.48 per cwt. With milk futures trading within a more normal range, it is important to  understand how Class prices and class utilization work to determine your milk check and how this knowledge can be used to manage risk. Read More