In the news affecting dairy producers' bottom lines as we finish February 2025:
- Class I base price dips for March
- Legislation introduced to improve milk pricing transparency
- Secretary Rollins releases funding to honor farmer contracts
- Zoetis partners with customers to support FFA
- Dairy Council of California awards grants to boost nutrition efforts
Class I base price dips for March
The Federal Milk Marketing Order (FMMO) advanced Class I base price took a dip for March. At $21.02 per hundredweight (cwt), the Class I base price is down 25 cents from February but $2.22 higher than March 2024.
Class I zone differentials are added to the base price at principal pricing points to determine the actual Class I price in each FMMO. With those additions, March Class I prices will average approximately $23.84 per cwt across all FMMOs, ranging from a high of $26.42 per cwt in the Florida FMMO to a low of $22.82 per cwt in the Upper Midwest FMMO. Those prices will be felt in March regional FMMO uniform milk prices, to be announced April 11-14.
Contributing to the March 2025 Class I base decline, the advanced butterfat pricing factor was about $2.85 per pound, down a dime from February.
The spread in the monthly advanced Class III skim milk pricing factor ($10.81 per cwt) and advanced Class IV skim milk pricing factor ($10.61 per cwt) shrunk to just 20 cents per cwt for March. That means that the current but soon-to-be altered Class I mover formula positively impacted Class I prices.
Based on Progressive Dairy calculations, using the Class I mover calculated under the “higher-of” formula would have resulted in a March Class I base price of about $20.40 per cwt, 62 cents less than the actual March price determined using the “average-of plus 74 cents” formula.
The change in the formula back to higher-of calculations – along with zone differential adjustments and other changes – are included in the FMMO modernization provisions to be implemented on June 1.
Legislation introduced to improve milk pricing transparency
U.S. Sens. Kirsten Gillibrand (D-New York) and Susan Collins (R-Maine) introduced the Fair Milk Pricing for Farmers Act. This bill would require manufacturers to report dairy processing costs every two years, which would help dairy farmers make sure that their prices accurately reflect the costs of production.
“Requiring manufacturers to report dairy processing costs on a biennial basis will give dairy producers, processors and cooperatives the data they need to ensure that their prices accurately reflect the costs of production,” Gillibrand said.
Reps. Nick Langworthy (R-New York) and Joe Morelle (D-New York) introduced companion legislation in the House of Representatives.
“Volatility in the dairy market causes uncertainty for farmers and consumers alike, leading to unfair prices for both. It’s critical we take action to ensure everyone receives the fairest price possible, which is exactly what this legislation seeks to do,” Morelle said.
David Fisher, president of the New York Farm Bureau, said, “We support the Fair Milk Pricing for Farmers Act because it would establish mandatory audited surveys as they relate to ‘make allowances.’ These audits would be a far better indicator of actual costs than current estimates, which are based on voluntary plant participation.”
Secretary Rollins releases funding to honor farmer contracts
U.S. Secretary of Agriculture Brooke Rollins announced that the USDA will release the first tranche of funding that was paused due to the review of funding in the Inflation Reduction Act (IRA).
In alignment with White House directives, Rollins will honor contracts that were already made directly to farmers. Specifically, the USDA is releasing approximately $20 million in contracts for the Environmental Quality Incentive Program, the Conservation Stewardship Program and the Agricultural Conservation Easement Program.
“Unfortunately, the Biden administration rushed out hundreds of millions of dollars of IRA funding that was supposed to be distributed over eight years. After careful review, it is clear that some of this funding went to programs that had nothing to do with agriculture – that is why we are still reviewing – whereas other funding was directed to farmers and ranchers who have since made investments in these programs. We will honor our commitments to American farmers and ranchers, and we will ensure they have the support they need to be the most competitive in the world,” Rollins said.
Zoetis partners with customers to support FFA
For 17 years, Zoetis has partnered with veterinarians and animal health distributors to nurture the next generation of agricultural leaders through its Industry Support Program. From Feb. 1 through April 30, customers may designate a portion of sales from eligible Zoetis cattle and equine products to their local chapters of the National FFA Organization.
“We owe the year-over-year success of the Industry Support Program to our customers,” said Kristin Kasselman, senior vice president, head of U.S. livestock and equine, Zoetis. “FFA chapters use program funds in numerous ways, including covering travel costs for conferences, funding scholarships and supporting community projects.”
In 2024, the program raised over $375,000 with 689 FFA chapters benefiting from the contributions. A significant majority of participating chapters said the Industry Support Program provided crucial assistance for defraying travel costs and fees associated with member activities.
The 2025 Industry Support Program started Feb. 1, 2025, and will conclude April 30, 2025. Zoetis customers have until May 5, 2025, to enroll and designate their preferred FFA chapters. To learn more about the program and how to contribute, contact your local Zoetis representative or visit the program's website.
Dairy Council of California awards grants to boost nutrition efforts
The Dairy Council of California announced the recipients of the 2024-25 Let’s Eat Healthy Community Grants, totaling $30,000 in funding to advance dairy agricultural literacy, evidence-based nutrition education and equitable access to wholesome foods that include milk and dairy foods.
This year’s winners, each awarded $10,000, include Hidden Valley Elementary School, Pasture Raised Kids and Arts in Action Community Charter Schools.
“The Let’s Eat Healthy Initiative exemplifies our commitment to collaborate with diverse partners across the state to support the health of children, families and communities,” said Amy DeLisio, CEO of Dairy Council of California. “These community grants support local needs and fund unique projects to enhance nutrition education and agricultural literacy efforts that inspire healthy eating.”
Hidden Valley Elementary School in Santa Rosa will implement In School Programs to Increase Reach of Education for Dairy, Healthy Eating and Nutrition, which focuses on hands-on nutrition education. The school’s 530 students will engage in dairy-focused food science lessons, recipe contests with garden-grown ingredients and dairy farm tours, while learning about balanced nutrition and sustainable food systems.
Pasture Raised Kids, a nonprofit in Fort Jones, serves children in rural Siskiyou County, where food insecurity is high. Its Milk Matters: Dairy Literacy for Healthier Kids in Siskiyou program will teach children ages 4 to 12 about the nutritional value of dairy and sustainable farming practices through interactive lessons, dairy tastings and educational farm tours.
Arts in Action Community Charter Schools in East Los Angeles will launch Dairy-ing to Try Something New, an initiative designed to bring culturally relevant dairy recipes, food science lessons and agricultural education to its transitional kindergarten through fifth grade students.
