PPD deductions continue into August
Federal Milk Marketing Orders across the country have announced a third month of Producer Price Differentials for August which will be deducted from farmer’s milk checks.
The Central Order, which includes Kansas, Oklahoma, and parts of Colorado, Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin, was set at -$3.62 and puts the Statistical Uniform Price at $16.15.
The Mideast Order’s was -$2.93, bringing the uniform price to $16.84 per cwt. The Mideast Order includes Michigan, Indiana, Ohio and parts of Kentucky, Pennsylvania, and West Virginia.
The Upper Midwest Federal Milk Marketing Order’s PPD was -$2.06, making the uniform price at $17.71 per hundredweight. The Upper Midwest Order includes Minnesota, Wisconsin and parts of the Dakotas, Iowa, Illinois, and Michigan.
PPD’s have gone negative because Class III milk has been priced higher than Class I fluid milk and it is part of the Federal Milk Marketing Order accounting rules. August deductions were less than the previous two months.