By  E. W. Lang

Spot milk price on orphaned tankers of milk were 50 cents to $1 per cwt. over Class this week, indicating what could be considered as some unexpected need of raw milk in the midwest.  One year ago, spot milk was $5 under, and two years ago it was Class to $1.50 over. 

There are also some cheese processors selling milk back to bottlers as schools open back up.  This is something we've not seen for a few years. 

Milk movement is being affected by driver shortages owing to not enough people who are licensed to drive tankers and can pass a urine test.  There is ongoing congestion at some ports that is forcing some processors to use rail cars for shipping, which is unusual for dairy products.     

Barrel cheese lost seven cents per lb. this week, blocks gained six cents.  I could give you a reason why, but I can't.  Butter gained four cents per lb.  Class III and IV Milk Futures have changed little in the last week and Milk-Feed Indices are pretty slim. 

Here is an intricacy of the Pandemic Market Volatility Assistance Program announced a week ago.  USDA intends to distribute this money based on the percentage Class I milk in the various milk marketing orders.  For instance, for the same 240 or so cows, Florida producers will get a lot of money because of their high Class I utilization.  Wisconsin producers will get one-fourth of that amount because of their low Class I utilization.

How much?  $8,000 per producer in Wisconsin and $32,000 plus change per Florida producer.  And this assumes 200 Holsteins or 240 Jerseys in milk for a maximum eligible volume of milk in either state.   Wisconsin producers are not going to like this.  As a policy, it's perhaps fair but perhaps foolish.   As a political device, it's silly. 

Viewing this politically, there are few Florida producers, and to most the $32,000 will be of some assistance.  There are a lot of Wisconsin milk producers who will find $8,000 to be of some assistance, but would find $32,000 enough to actually live and milk another day, or maybe buy a Jr. Yearling to show as a Heifer Calf this fall,  if the money gets here soon enough.      

USDA has also changed how hay price is figured into the DMC subsidy, so this will amount to more money per producer signed up for the program in both the short and long term.