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Are New Producer Formulas Increasing Producer Revenue? NO!

  • Writer: ZISK
    ZISK
  • Jul 14
  • 1 min read
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June was the first month that some of the new USDA pricing formulas for producer milk were implemented. The new formulas for Class III milk paid producers $1.01 less per cwt. than the prior formulas paid.


The calculations used in the tables below are based on the actual current component levels and the June 2025 commodity prices used to calculate component prices. See this earlier post for details on the analysis of the new USDA formulas.


Table I below quantifies the changes in revenue between the prior and new USDA formulas. In both cases, Class III milk is valued based on 4.25% butterfat, 3.32% protein, and 5.9% other solids, which is the current actual levels. While there are many changes in the formulas, the most significant changes are in the make allowances.


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John Geuss

July 10, 2025

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