The spread between Class IV and Class III milk prices continues to decline, suggesting a reduction in Class IV depooling – but maybe not yet.

The widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class III milk prices pushed Class IV pooling lower.

A widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class milk prices ensures there’s even more incentive to depool Class IV milk.

Recent news of negative producer price differentials (PPDs) has resulted in massive depooling of milk from Federal Milk Marketing Orders (FMMOs). This depooling, and not the negative PPDs that led to it, is the real threat to dairy farm income.