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USDA amends Class I price formula
The USDA has announced a change to the pricing of skim milk in the Federal Milk Marketing Order.
USDA says the fluctuation in market prices used to determine the Class I price increases risk and uncertainty associated with hedging. Congress in the 2018 Farm Bill addressed that fluctuation and the new formula will be used starting May 1st.
The Class I skim milk price will now be calculated with the average monthly Class III and Class IV advanced pricing factors plus $0.74 per hundredweight plus the applicable adjusted Class I differential.
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