COVID-19 is impacting the entire economy and marketplace, including the milk market. We’ll be providing weekly updates with milk futures prices and other market updates to help keep you as knowledgeable as possible during this time. View the entire list of weekly updates.
Average Class III price over the next 12 months is down as of 2 p.m. on May 8 relative to prices on Tuesday. However, it is up compared to closing prices on last Friday, May 1. Class III price for the next 12 months averages $15.09/cwt, up 41 cents from last Friday’s $14.68. Class IV average price continues to experience gains over the next 12 months compared to last Friday. Class IV price for the next 12 months averages $12.95/cwt and is also up 41 cents from last Friday’s $12.54. Class IV price is up 15 cents compared to Tuesday’s average price.
The USDA did not release any details on how direct payments to dairy farmers would be calculated nor when payments would be made. FSA has been tasked with implementing the program once details are released. Cynthia Walters from Pennsylvania’s State FSA office says that details are expected within the next two weeks.
The Center for Dairy Excellence hosted a fourth dairy industry conference call on Thursday. The recording for that call can be accessed here. Panelists included Rob Barley, Chair of the Pennsylvania Milk Marketing Board, Cynthia Walters, FSA Dairy Program Specialist, Dr. Jud Heinrichs, Professor of Dairy Science with Pennsylvania State University and Dr. John Noullet, Mental Health Care Educator with Philhaven. Topics included the recently passed $15.00/cwt Class I milk floor for Pennsylvania for May and June, how to safely decrease milk production to meet milk marketer production requirements, USDA/FSA updates, and how to prevent and cope with anxiety caused by the current crisis. Mike Hosterman with AgChoice Farm Credit answered some questions regarding the Small Business Association’s Paycheck Protection Program and Economic Injury Disaster Loan program.