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These purchase prices are set high enough to enable dairy processors to pay farmers at least the support price for the milk they use in manufacturing these products. The 2002 farm bill (P.L. 107-171, Sec. 1501) mandated a support price of $9.90/ cwt , effective through December 31, 2007, when the program by law was scheduled to expire.
The Food and Agriculture Organization (FAO) Food Price Index 1961–2021 in nominal and real terms. The Real Price Index is the Nominal Price Index deflated by the World Bank Manufactures Unit Value Index (MUV). Years 2014–2016 is 100. Food prices refer to the average price level for food across countries, regions and on a global scale. [1]
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According to The New York Times, if the current Farm Bill expires and the pricing equation reverts to its 1949 standard, the government will pay considerably more for milk.
By December 2010, milk prices had increased to about $13 per hundredweight from a low of below $10 in 2009. However, the price of corn used for feed had increased because of its use by the ethanol industry. Van Dam was quoted that month as saying that at current prices, dairy operators are at or close to the break-even point. [61] By the summer ...
The Minnesota-Wisconsin price (M-W price), prior to May 1995, was a component of the basic formula price for farm milk formerly used in federal milk marketing orders. It represented a survey of the average price Minnesota and Wisconsin plants were paying farmers for Grade B milk to be used in processed dairy products.
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