Dairy Forward Pricing Pilot Program 

Information for the Complete Program Period, 

September 2000 through December 2004 

USDA Agricultural Marketing Service, Dairy Programs, submitted a report to the Senate 

Committee on Agriculture, Nutrition, and Forestry and the House Committee on 

Agriculture entitled A Study of the Dairy Forward Pilot Program and Its Effect on Prices 

Paid Producers for Milk, October 2002. The report covers the period from September 

2000, the first fully operational month of the program, through March 2002. Dairy 

Programs continued to collect data concerning the program after the study period. The 

tables and figures on the following pages present data covering the period from 

September 2000 through the end of the program on December 31, 2004. 
1

Year and 

Month

Contract 

price

Noncontract 

price (had 

there been 

no contract)

Federal 

order 

minimum 

blend price

Contract 

minus no 

contract

Contract 

minus 

Federal 

order blend 

price

2000

Sept. 14.029 13.088 11.821 0.941 2.208

Oct. 14.273 13.127 11.416 1.146 2.857

Nov. 14.786 12.039 10.829 2.747 3.957

Dec. 14.671 12.725 11.502 1.946 3.169

2001

Jan. 14.009 12.860 11.656 1.149 2.353

Feb. 13.821 13.052 11.729 0.769 2.092

Mar. 13.858 14.154 12.754 -0.296 1.105

Apr. 13.569 14.544 13.326 -0.975 0.242

May 13.396 16.053 14.803 -2.657 -1.407

Jun. 13.406 16.911 15.604 -3.506 -2.198

Jul. 13.382 17.104 15.787 -3.722 -2.405

Aug. 13.226 17.013 15.961 -3.786 -2.735

Sept. 13.819 17.753 16.683 -3.934 -2.864

Oct. 14.046 16.646 15.501 -2.600 -1.454

Nov. 14.308 14.060 13.338 0.248 0.970

Dec. 13.774 13.777 12.832 -0.003 0.943

2002

Jan. 14.671 14.038 12.955 0.634 1.717

Feb. 14.860 13.833 12.664 1.027 2.196 Contract Non-contract FMMO

Mar. 14.454 12.790 11.926 1.664 2.528 14.019 14.504 13.320

Apr. 14.157 12.705 11.803 1.453 2.354

May 14.076 12.437 11.587 1.639 2.489

Jun. 13.948 11.729 10.966 2.220 2.982

Jul. 13.875 11.021 10.278 2.854 3.597

Aug. 14.059 11.196 10.462 2.864 3.597

Sept. 14.100 11.505 10.774 2.595 3.326

Oct. 14.547 12.630 11.656 1.918 2.891

Nov. 14.389 11.880 11.125 2.509 3.265

Dec. 14.293 11.870 10.995 2.423 3.298

(Table 1 continued on following page.)

Table 1: Average Monthly Prices for Contracted Milk Volumes in Eight Orders1/: With Contract, Without 

Contract, and at Federal Order Minimum Prices2/

Weighted average prices at test Price differences

$/cwt. $/cwt.

Study Period

Sept. 2000-Mar. 2002 Averages
2

Year and 

Month

Contract 

price

Noncontract 

price (had 

there been 

no contract)

Federal 

order 

minimum 

blend price

Contract 

minus no 

contract

Contract 

minus 

Federal 

order blend 

price

2003

Jan. 14.264 12.029 10.989 2.235 3.275

Feb. 13.930 11.514 10.622 2.417 3.308

Mar. 13.728 10.994 10.152 2.734 3.576

Apr. 13.632 11.109 10.216 2.523 3.416

May 13.454 11.289 10.367 2.165 3.087

Jun. 13.417 11.277 10.289 2.140 3.129

Jul. 13.586 12.533 11.079 1.053 2.508

Aug. 13.701 13.927 12.156 -0.225 1.545

Sept. 14.105 15.826 13.796 -1.721 0.309

Oct. 14.384 16.334 14.365 -1.951 0.018

Nov. 14.199 15.576 13.962 -1.376 0.238

Dec. 14.080 14.137 13.208 -0.057 0.872

2004

Jan. 3/ 14.082 13.787 12.727 0.295 1.355

Feb. 3/ 14.040 14.214 13.120 -0.174 0.920

Mar. 14.464 16.695 15.561 -2.232 -1.097

Apr. 16.058 20.583 15.808 -4.525 0.250

May 15.802 21.781 18.734 -5.978 -2.932

Jun. 3/ 15.366 19.079 18.040 -3.714 -2.674

Jul. 14.961 16.628 15.796 -1.666 -0.835

Aug. 15.322 15.858 14.556 -0.536 0.766

Sept. 15.434 16.396 15.066 -0.961 0.368

Oct. 15.927 16.595 15.363 -0.667 0.565

Nov. 14.890 16.956 15.585 -2.066 -0.695

Dec. 14.623 17.602 15.674 -2.979 -1.051 Contract Non-contract FMMO

Average 14.255 14.332 13.076 -0.077 1.179 14.391 14.233 12.936

St. Dev. 0.664 2.575 2.223 -1.912 -1.560

Minimum 13.226 10.994 10.152 2.232 3.075

Maximum 16.058 21.781 18.734 -5.723 -2.676

Range 2.832 10.787 8.583 -7.955 -5.751

3/ Prices have been revised for January, February, and June of 2004.

Table 1 Continued: Average Monthly Prices for Contracted Milk Volumes in Seven Orders1/: With Contract, 

Without Contract, and at Federal Order Minimum Prices2/

Weighted average prices at test Price differences

1/ Eight Orders refers to the eight Federal orders with participation in the Dairy Forward Pricing Program since it began--the

Appalachian, Central, Mideast, Northeast, Pacific Northwest, Southeast, Upper Midwest, and Western orders.

2/ For a detailed description of how average prices are computed, see Appendix D of A Study of the Dairy Forward Pricing 

Program and Its Effect on Prices paid Producers for Milk , USDA-AMS Dairy Programs, October 2002. 

$/cwt. $/cwt.

Effective April 1, 2004, the Western order was terminated.

Apr. 2002-Dec. 2004 Averages
3

Figure 1: Avg. Prices at Test: Contract Price, Non-contract Price, 

Federal Order Minimum

9.000

11.000

13.000

15.000

17.000

19.000

21.000

23.000

Sept. 2000

Dec. 2000

Mar. 2001

Jun. 2001

Sept. 2001

Dec. 2001

Mar. 2002

Jun. 2002

Sept. 2002

Dec. 2002

Mar. 2003

Jun. 2003

Sept. 2003

Dec. 2003

Mar. 2004

Jun. 2004

Sept. 2004

Dec. 2004

$/cwt.

Contract price Non-contract price Federal order minimum

Table 2: Program1/ Contracting Producers Categorized by Total Pounds Delivered Per Month

# of 

producers Percent

# of 

producers Percent

# of 

producers Percent

# of 

producers Percent

2000

Sept. 171 56.3 109 35.9 15 4.9 9 3.0 304

Oct. 170 53.6 116 36.6 22 6.9 9 2.8 317

Nov. 183 56.5 111 34.3 18 5.6 12 3.7 324

Dec. 171 53.6 118 37.0 18 5.6 12 3.8 319

2001

Jan. 505 50.8 413 41.5 51 5.1 25 2.5 994

Feb. 554 55.1 372 37.0 52 5.2 27 2.7 1005

Mar. 498 48.3 438 42.4 66 6.4 30 2.9 1032

Apr. 558 48.9 470 41.2 75 6.6 38 3.3 1141

May 318 40.8 348 44.6 72 9.2 42 5.4 780

Jun. 356 43.5 340 41.5 80 9.8 43 5.3 819

Jul. 359 41.5 373 43.1 84 9.7 49 5.7 865

Aug. 361 41.4 359 41.1 89 10.2 64 7.3 873

Sept. 379 43.4 347 39.7 85 9.7 62 7.1 873

Oct. 351 42.7 347 42.2 85 10.3 39 4.7 822

Nov. 306 41.2 295 39.7 82 11.0 60 8.1 743

Dec. 279 38.7 294 40.8 82 11.4 66 9.2 721

Table 2 continued on the following page.

Total 

number of 

producers 

per month

Year and 

month

Delivery pounds per month

100,000 or less 100,000 to 400,000 400,000 to 1 million 1 million or more
4

Table 2 Continued: Program1/ Contracting Producers Categorized by Total Pounds Delivered Per Month

# of 

producers Percent

# of 

producers Percent

# of 

producers Percent

# of 

producers Percent

2002

Jan. 33 19.5 59 34.9 37 21.9 40 23.7 169

Feb. 34 24.8 54 39.4 23 16.8 26 19.0 137

Mar. 27 15.8 69 40.4 35 20.5 40 23.4 171

Apr. 37 19.9 76 40.9 32 17.2 41 22.0 186

May 40 21.9 70 38.3 33 18.0 40 21.9 183

Jun. 44 23.4 72 38.3 32 17.0 40 21.3 188

Jul. 48 23.9 80 39.8 33 16.4 40 19.9 201

Aug. 41 20.6 79 39.7 35 17.6 44 22.1 199

Sept. 50 24.5 76 37.3 35 17.2 43 21.1 204

Oct. 47 27.3 71 41.3 25 14.5 29 16.9 172

Nov. 45 23.4 74 38.5 30 15.6 43 22.4 192

Dec. 43 22.8 70 37.0 32 16.9 44 23.3 189

2003 2/

Jan. 50 27.8 51 28.3 30 16.7 49 27.2 180

Feb. 56 28.0 59 29.5 36 18.0 49 24.5 200

Mar. 52 25.1 62 30.0 37 17.9 56 27.1 207

Apr. 54 25.2 61 28.5 45 21.0 54 25.2 214

May 43 18.9 78 34.2 44 19.3 63 27.6 228

Jun. 53 21.6 82 33.5 50 20.4 60 24.5 245

Jul. 9 23.7 13 34.2 7 18.4 9 23.7 38

Aug. 19 24.1 29 36.7 15 19.0 16 20.3 79

Sept. 13 21.3 22 36.1 12 19.7 14 23.0 61

Oct. 11 19.3 20 35.1 13 22.8 13 22.8 57

Nov. 54 23.8 78 34.4 51 22.5 44 19.4 227

Dec. 77 21.4 119 33.1 76 21.1 88 24.4 360

2004 2/

Jan. 26 12.3 71 33.6 49 23.2 65 30.8 211

Feb. 29 13.6 72 33.8 50 23.5 62 29.1 213

Mar. 9 15.0 16 26.7 16 26.7 19 31.7 60

Apr. 35 23.6 76 51.4 19 12.8 18 12.2 148

May 44 25.7 93 54.4 20 11.7 14 8.2 171

Jun. 122 23.6 241 46.5 87 16.8 68 13.1 518

Jul. 91 20.2 188 41.7 88 19.5 84 18.6 451

Aug. 84 21.2 194 48.9 71 17.9 48 12.1 397

Sept. 71 31.6 104 46.2 30 13.3 20 8.9 225

Oct. 76 22.8 146 43.7 65 19.5 47 14.1 334

Nov. 19 18.8 36 35.6 26 25.7 20 19.8 101

Dec. 19 24.7 22 28.6 19 24.7 17 22.1 77

Average 137 30 147 38 45 16 40 16 368

1/ Program refers to Dairy Forward Pricing Program.

milk were outside the scope of the Program. Effective April 1, 2004, the Western order was terminated.

2/ The apparent reductions in forward contract activity in July-Nov. of 2003, Jan.-May 2004, Sept. 2004, and Nov.-Dec. 

2004 are primarily a result of handlers' depooling of milk in these months. Economic conditions and the Federal order 

system created conditions that made depooling both contract and non-contract milk advantageous to handlers. Although 

forward contracts for depooled milk generally remained active during these periods, contracts for depooled 

Year and 

month

Delivery pounds per month Total 

number of 

producers 

per month

100,000 or less 100,000 to 400,000 400,000 to 1 million 1 million or more
Figure 2: Number of Producers Categorized by Pounds of Total Deliveries Per Month

0

200400600800

10001200

Sept. 2000

Nov. 2000

Jan. 2001

Mar. 2001

May 2001

Jul. 2001

Sept. 2001

Nov. 2001

Jan. 2002

Mar. 2002

May 2002

Jul. 2002

Sept. 2002

Nov. 2002

Jan. 2003

Mar. 2003

May-03

Jul. 2003

Sept. 2003

Nov. 2003

Jan. 2004

Mar. 2004

May 2004

Number of Producers

100,000 or less 100,000 to 400,000 400,000 to 1 million 1 million or more
Table 3a: Prices received for contract milk ($/cwt, at test) Signing 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 200

Quarter 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1

2000

3rd 13.911 14.599 14.115 13.788 13.579 14.087 R

4th --- R 13.791 13.580 13.368 13.950 R

2001

1st --- --- 14.146 12.780 12.710 12.968 14.025 R

2nd --- --- --- 14.963 14.753 14.762 14.168 14.329 R R R R --- R R 

3rd --- --- --- --- 15.648 16.008 15.901 15.576 15.318 15.581 R R

4th --- --- --- --- --- 15.377 14.012 13.578 13.602 13.942 R R

2002

1st --- --- --- --- --- --- 13.665 13.102 13.525 14.010 13.808 13.540 R R

2nd --- --- --- --- --- --- --- 13.497 13.711 13.849 13.074 12.788 --- 13.561

3rd --- --- --- --- --- --- --- --- 13.978 14.238 13.586 13.342 13.841 14.204 14.

4th --- --- --- --- --- --- --- --- --- 14.571 13.658 13.223 13.242 14.117 13.

2003

1st --- --- --- --- --- --- --- --- --- --- 13.038 13.357 14.151 14.361 14.

2nd --- --- --- --- --- --- --- --- --- --- --- 12.630 13.273 13.669 14.

3rd --- --- --- --- --- --- --- --- --- --- --- --- 14.248 13.811 13.

4th --- --- --- --- --- --- --- --- --- --- --- --- --- 15.022 13.

2004

1st --- --- --- --- --- --- --- --- --- --- --- --- --- --- 13.

2nd --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

3rd --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

4th --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

(Table 3 continued on next page.)Table 3: Contract Milk Price Comparisons1/, Eight Orders2/ by Signing and Delivery Quarter Combination

Delivery quarter
Table 3b: Prices had there been no forward contracts ($/cwt, at test)Signing 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 200

Quarter 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1

2000

3rd 12.992 12.628 13.470 15.852 17.335 15.189 R

 4th --- R 13.304 16.001 17.694 15.109 R

2001

1st --- --- 14.411 15.154 16.700 13.950 13.662 R

 2nd --- --- --- 16.931 17.644 14.959 13.332 12.736 R R R R --- R R 

 3rd --- --- --- --- 17.839 15.554 14.237 13.022 11.813 12.510 R R

 4th --- --- --- --- --- 14.019 12.966 11.935 11.011 11.780 R R

2002

1st --- --- --- --- --- --- 11.908 11.626 10.633 11.654 10.941 11.048 R R

2nd --- --- --- --- --- --- --- 11.737 10.904 11.655 10.918 10.717 --- 13.812

3rd --- --- --- --- --- --- --- --- 12.160 12.500 11.385 11.181 13.939 15.117 15.

4th --- --- --- --- --- --- --- --- --- 12.468 11.324 10.994 13.943 14.652 13.

2003

1st --- --- --- --- --- --- --- --- --- --- 10.894 11.279 14.220 15.393 14.

2nd --- --- --- --- --- --- --- --- --- --- --- 11.669 15.235 14.461 14.

 3rd --- --- --- --- --- --- --- --- --- --- --- --- 14.771 14.233 14.

 4th --- --- --- --- --- --- --- --- --- --- --- --- --- 15.465 13.

2004

1st --- --- --- --- --- --- --- --- --- --- --- --- --- --- 13.

2nd --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

3rd --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

4th --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

(Table 3 continued on next page.)Table 3 Continued: Contract Milk Price Comparisons1/, Eight Orders2/ by Signing and Delivery Quarter Combination

Delivery quarter
Table 3c: Contract price minus non-contract price ($/cwt)Signing 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 200

Quarter 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1

2000

3rd 0.919 1.971 0.645 -2.064 -3.756 -1.102 R

 4th --- R 0.487 -2.421 -4.326 -1.159 R

2001

1st --- --- -0.265 -2.374 -3.990 -0.982 0.364 R

 2nd --- --- --- -1.968 -2.891 -0.197 0.836 1.593 R R R R --- R R 

 3rd --- --- --- --- -2.191 0.454 1.664 2.554 3.505 3.071 R R

 4th --- --- --- --- --- 1.357 1.046 1.644 2.590 2.163 R R

2002

1st --- --- --- --- --- --- 1.757 1.476 2.892 2.356 2.867 2.492 R R

2nd --- --- --- --- --- --- --- 1.760 2.806 2.195 2.156 2.071 --- -0.250

3rd --- --- --- --- --- --- --- --- 1.818 1.738 2.201 2.161 -0.098 -0.913 -0.6

4th --- --- --- --- --- --- --- --- --- 2.103 2.334 2.229 -0.701 -0.535 0.0

2003

1st --- --- --- --- --- --- --- --- --- --- 2.144 2.078 -0.069 -1.032 -0.4

2nd --- --- --- --- --- --- --- --- --- --- --- 0.961 -1.963 -0.792 -0.5

 3rd --- --- --- --- --- --- --- --- --- --- --- --- -0.523 -0.422 -0.2

 4th --- --- --- --- --- --- --- --- --- --- --- --- --- -0.444 -0.3

2004

1st --- --- --- --- --- --- --- --- --- --- --- --- --- --- -0.

2nd --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

3rd --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

4th --- --- --- --- --- --- --- --- --- --- --- --- --- --- -

3/ Revised for some contracts with deliveries in the first half of 2004.Northwest, Southeast, Upper Midwest, and Western orders. Effective April 1, 2004, the Western order was terminated.2/ Eight Orders refers to the eight Federal orders with participation in the Program since it began—the Appalachian, Central, Mideast, N

Delivery quarter

R=Restricted data. Data provided by fewer than three parties is considered restricted because aggregation of such information may not 

1/ For a detailed description of how average prices are computed, see Appendix D of A Study of the Dairy Forward Pricing Pilot Prog

Paid Producers for Milk , USDA-AMS Dairy Programs, October 2002.
9

Northeast Southeast Appalachian Central Mideast

Pacific 

Northwest Western

Upper 

Midwest

Seven 

Orders2/

Eight 

Orders2/

2000

Sept. --- 1 --- 3 1 --- 1 2 6 6

Oct. --- 1 --- 3 1 --- 1 2 5 6

Nov. --- 1 --- 3 1 --- 1 3 5 6

Dec. --- 1 --- 3 1 --- 1 3 5 6

2001

Jan. --- 1 --- 3 1 --- --- 8 4 10

Feb. --- 1 --- 3 1 --- --- 10 4 12

Mar. --- 1 --- 3 1 --- --- 10 4 12

Apr. 1 1 --- 3 2 --- --- 11 6 14

May 2 1 --- 4 2 --- --- 12 7 16

June 2 1 --- 4 3 --- 2 11 10 19

July 2 1 --- 4 3 --- 1 12 9 19

Aug. 2 1 --- 4 3 --- 2 14 10 20

Sept. 2 1 --- 4 2 1 2 14 10 21

Oct. 2 1 --- 4 2 1 1 14 9 21

Nov. 2 1 --- 4 2 1 2 13 10 20

Dec. 2 1 --- 4 2 1 2 12 10 19

2002

Jan. 2 --- --- 4 2 1 1 11 9 17

Feb. 2 --- --- 4 2 1 1 10 9 17

Mar. 2 --- --- 4 2 1 1 10 9 16

Apr. 1 --- --- 3 3 1 --- 9 7 13

May 1 --- --- 4 3 1 --- 9 8 14

Jun. 1 --- --- 4 3 1 --- 8 8 13

Jul. 1 --- --- 4 3 1 1 9 9 14

Aug. 1 --- --- 4 1 1 1 9 7 13

Sept. 1 --- --- 4 1 1 1 7 7 12

Oct. 1 --- --- 3 1 1 1 8 6 13

Nov. 1 --- --- 3 1 1 1 9 6 13

Dec. 1 --- --- 3 1 1 1 10 6 13

Table 4: Number of Handlers Receiving Forward Contract Milk Under the Program1/ by Federal Milk Marketing Order

(Table 4 continued on next page.)
10

Northeast Southeast Appalachian Central Mideast

Pacific 

Northwest Western

Upper 

Midwest

Seven 

Orders2/

Eight 

Orders2/

2003 3/

Jan. 1 --- --- 3 1 1 1 10 6 14

Feb. 1 --- --- 3 1 1 1 11 6 15

Mar. 1 --- --- 3 1 1 1 12 6 16

Apr. 1 --- --- 4 1 1 1 12 7 17

May 1 --- --- 4 1 1 1 13 7 18

Jun. 1 --- --- 4 1 1 1 14 7 19

Jul. 1 --- --- 1 --- --- 2 5 4 8

Aug. 1 --- --- 1 1 --- 2 9 5 13

Sept. 1 --- --- 1 1 --- 1 8 4 11

Oct. 1 --- --- 1 --- --- 2 9 4 12

Nov. 1 --- --- 4 2 --- 2 13 8 19

Dec. 1 --- 1 4 2 1 2 16 10 22

2004 3/

Jan. --- --- 2 4 2 1 1 14 8 20

Feb. --- --- 2 4 2 1 1 13 8 19

Mar. --- --- 1 1 1 1 1 9 5 13

Apr. --- --- 1 2 --- --- --- 8 3 10

May --- --- 1 1 --- --- --- 10 2 11

Jun. --- --- 2 4 2 1 --- 15 7 20

July --- --- 1 4 2 1 --- 15 7 20

Aug. --- --- 1 4 2 1 --- 14 7 19

Sept. --- --- 2 1 2 --- 13 4 15

Oct. --- --- 2 4 2 1 --- 14 7 19

Nov. --- --- 2 1 2 --- --- 13 4 15

Dec. --- --- 2 1 --- --- --- 13 3 15

participation. Eight Orders refers to the Federal milk marketing orders with participation in the program. These include the 

Appalachian, Central, Mideast, Northeast, Pacific Northwest, Southeast, Upper Midwest, and Western orders.

Table 4 Continued: Number of Handlers Receiving Forward Contract Milk Under the Program1/ by Federal Milk 

Marketing Order

1/ Program refers to the Dairy Forward Pricing Program.

2/ The Upper Midwest Milk Marketing Order had by far the most Program activity. Data is presented to allow comparisons of 

numbers of participating handlers receiving contract milk in the Upper Midwest to the other orders with 

outside the scope of the Program. Effective April 1, 2004, the Western order was terminated.

system created conditions that made depooling both contract and non-contract milk advantageous to handlers. Although forward 

contracts for depooled milk generally remained active during these periods, contracts for depooled milk were 

Effective April 1, 2004, the Western order was terminated. Seven Orders refers to all of these orders except for the Upper 

Midwest. The number of handlers for the Seven Orders and Eight Orders is not simply the sum of the handlers for the

individual orders because some Program participating handlers had pooled milk in more than one order. For most information in 

the study, insufficient data was available to be presented in disaggregation beyond the Seven Orders. Thus,

to maintain comparability, the Seven orders category is included in the study's handler tables. This updated table maintains the 

categories.

3/ The apparent reductions in forward contract activity in July-Nov. of 2003, Jan.-May 2004, Sept. 2004, and Nov.-Dec. 2004 are

primarily a result of handlers' depooling of milk in these months. Economic conditions and the Federal order pricing 
11

Figure 3: Number of Program Participating Milk Handlers

0

5

10

15

20

25

Sept. 2000

Nov. 2000

Jan. 2001

Mar. 2001

May 2001

Jul. 2001

Sept. 2001

Nov. 2001

Jan. 2002

Mar. 2002

May 2002

Jul. 2002

Sept. 2002

Nov. 2002

Jan. 2003

Mar. 2003

May-03

Jul. 2003

Sept. 2003

Nov. 2003

Jan. 2004

Mar. 2004

May 2004

Jul. 2004

Sept. 2004

Nov. 2004

Number of Milk Handlers

Table 5: Milk Volumes and Gross Cash Receipts for Contract Milk in Eight Orders1/ With Comparisons

Total pooled 

milk of 

Program 3/ 

producers Contract milk

Total pooled 

milk of 

Program 

producers Contract milk

Contract milk 

had there 

been no 

contract

Contract milk

at Federal 

order 

minimum 

prices

Contract 

minus no 

contract

Contract 

minus 

Federal order 

minimum

2000

Sept. 58,764.7 46,592.3 8,112.1 6,536.3 6,097.8 5,507.7 438.5 1,028.6

Oct. 65,796.1 51,287.6 9,179.0 7,320.5 6,732.5 5,855.0 588.0 1,465.4

Nov. 67,250.8 53,143.8 9,547.5 7,857.7 6,398.1 5,755.0 1,459.6 2,102.7

Dec. 71,402.2 54,456.4 10,169.0 7,989.4 6,929.5 6,263.7 1,059.9 1,725.7

2001

Jan. 181,713.3 127,384.0 24,785.0 17,845.2 16,381.3 14,847.9 1,463.9 2,997.3

Feb. 180,275.9 126,135.4 24,581.6 17,433.1 16,463.4 14,793.9 969.7 2,639.2

Mar. 212,767.2 144,748.2 29,760.8 20,059.6 20,488.0 18,460.6 -428.4 1,599.0

Apr. 251,424.6 176,840.5 35,149.2 23,994.7 25,719.6 23,566.4 -1,724.8 428.4

May 221,123.1 142,175.4 32,061.8 19,046.5 22,823.6 21,046.5 -3,777.1 -2,000.1

Jun. 230,861.1 151,544.5 34,014.6 20,315.8 25,628.2 23,646.9 -5,312.5 -3,331.1

Jul. 243,640.2 169,016.0 35,434.1 22,617.7 28,909.2 26,681.8 -6,291.5 -4,064.2

Aug. 291,887.9 195,752.7 42,283.0 25,890.8 33,303.0 31,244.5 -7,412.2 -5,353.7

Sept. 290,659.5 205,016.2 43,505.3 28,331.7 36,397.2 34,202.8 -8,065.5 -5,871.1

Oct. 236,533.4 170,891.6 34,946.1 24,004.0 28,447.3 26,489.4 -4,443.3 -2,485.4

Nov. 282,415.6 195,199.0 40,053.1 27,929.3 27,445.3 26,036.3 483.9 1,892.9

Dec. 298,089.6 199,839.9 41,103.3 27,526.7 27,532.3 25,643.0 -5.6 1,883.8

(Table 5 continued on next page.)

Year and 

Month

Milk Volumes 2/

Gross cash receipts before deductions for hauling, 

promotion, and marketing charges

Differences in gross cash 

receipts

1000s lbs. $1,000 
12

Table 5 Continued: Milk Volumes and Gross Cash Receipts for Contract Milk in Eight Orders1/ With Comparisons

Total pooled 

milk of 

Program 3/ 

producers Contract milk

Total pooled 

milk of 

Program 

producers Contract milk

Contract milk 

had there 

been no 

contract

Contract milk 

at Federal 

order 

minimum 

prices

Contract 

minus no 

contract

Contract 

minus 

Federal order 

minimum

2002

Jan. 150,619.4 86,514.1 21,565.8 12,692.9 12,144.7 11,207.6 548.1 1,485.3

Feb. 103,385.6 74,383.1 15,071.7 11,053.3 10,289.2 9,420.0 764.0 1,633.3

Mar. 161,509.9 100,636.4 22,264.2 14,546.2 12,871.8 12,002.3 1,674.4 2,543.9

Apr. 169,616.8 111,936.9 23,197.4 15,847.4 14,221.2 13,212.1 1,626.2 2,635.3

May 171,402.9 114,675.4 23,243.9 16,141.2 14,261.7 13,287.5 1,879.5 2,853.7

Jun. 174,693.2 120,869.2 23,176.8 16,859.4 14,176.4 13,254.7 2,683.0 3,604.7

Jul. 181,001.6 122,411.0 23,374.0 16,985.1 13,491.5 12,581.3 3,493.5 4,403.7

Aug. 194,021.3 127,905.1 25,303.9 17,982.7 14,320.1 13,382.1 3,662.6 4,600.6

Sept. 193,506.4 132,480.0 25,729.4 18,679.5 15,241.2 14,273.5 3,438.3 4,406.0

Oct. 130,760.1 97,795.8 18,470.0 14,228.9 12,353.0 11,400.9 1,875.9 2,828.0

Nov. 177,801.2 121,884.1 24,128.5 17,538.2 14,480.3 13,559.1 3,057.9 3,979.1

Dec. 183,137.9 120,491.9 24,603.6 17,215.0 14,296.9 13,242.8 2,918.1 3,972.2

2003

Jan. 170,436.8 101,713.6 22,418.2 14,508.8 12,235.5 11,177.7 2,273.2 3,331.1

Feb. 173,731.2 110,138.9 22,412.6 15,342.4 12,680.9 11,699.1 2,661.6 3,643.3

Mar. 206,747.6 128,883.4 25,935.6 17,692.5 14,169.4 13,083.7 3,523.1 4,608.8

Apr. 209,944.4 129,994.4 26,300.5 17,721.3 14,441.3 13,280.6 3,280.0 4,440.7

May 228,531.2 137,028.5 28,484.6 18,436.2 15,469.3 14,205.7 2,966.9 4,230.5

Jun. 205,724.7 127,456.4 25,685.1 17,101.0 14,373.1 13,113.4 2,727.9 3,987.6

Jul. 37,986.8 30,255.5 5,078.9 4,110.6 3,792.0 3,351.9 318.6 758.7

Aug. 56,980.8 39,441.3 7,960.4 5,403.9 5,492.8 4,794.6 -88.9 609.3

Sept. 50,086.4 36,982.5 7,259.4 5,216.5 5,852.8 5,102.2 -636.3 114.3

Oct. 50,267.2 37,312.1 7,452.8 5,366.9 6,094.7 5,360.1 -727.8 6.8

Nov. 143,234.1 89,662.0 20,984.2 12,731.5 13,965.7 12,518.2 -1,234.2 213.4

Dec. 295,730.0 194,035.2 41,667.3 27,319.7 27,430.1 25,627.6 -110.3 1,692.1

(Table 5 continued on next page.)

Year and 

Month

Milk Volumes

Gross cash receipts before deductions for hauling, 

promotion, and marketing charges 

Differences in gross cash 

receipts

1000s lbs. $1,000 
13

Table 5 Continued: Milk Volumes and Gross Cash Receipts for Contract Milk in Eight Orders1/ With Comparisons

Total pooled 

milk of 

Program 3/ 

producers Contract milk

Total pooled 

milk of 

Program 

producers Contract milk

Contract milk 

had there 

been no 

contract

Contract milk 

at Federal 

order 

minimum 

prices

Contract 

minus no 

contract

Contract 

minus 

Federal order 

minimum

2004

Jan. 4/ 226,141.5 142,678.1 31,535.1 20,091.6 19,670.4 18,158.6 421.2 1,933.0

Feb. 4/ 213,545.4 137,612.7 30,126.1 19,321.2 19,560.4 18,055.2 -239.2 1,266.0

Mar. 77,391.3 55,367.8 11,727.3 8,008.3 9,243.9 8,615.7 -1,235.6 -607.4

Apr. 73,670.6 53,107.8 12,924.6 8,528.0 10,931.3 8,395.3 -2,403.3 132.7

May 73,633.6 52,611.5 12,960.1 8,313.8 11,459.1 9,856.5 -3,145.4 -1,542.7

Jun. 4/ 281,924.6 187,322.2 46,784.5 28,783.2 35,739.6 33,792.8 -6,956.4 -5,009.6

Jul. 321,475.3 215,751.3 49,802.9 32,278.9 35,874.3 34,079.8 -3,595.4 -1,800.9

Aug. 230,918.0 150,642.1 35,881.2 23,080.7 23,888.2 21,927.3 -807.4 1,153.4

Sept. 93,315.5 66,899.6 14,703.5 10,325.4 10,968.5 10,079.3 -643.1 246.1

Oct. 218,817.7 145,944.9 35,347.7 23,245.2 24,219.0 22,421.3 -973.8 823.9

Nov. 75,786.1 49,807.4 11,933.5 7,416.3 8,445.2 7,762.7 -1,028.9 -346.4

Dec. 62,210.4 41,784.6 9,857.1 6,110.1 7,355.0 6,549.1 -1,244.9 -439.0

Totals 8,597,478.4 5,766,903.4 1,214,899.4 814,150.9 821,177.6 757,140.8 -7,026.6 57,010.2

Year and 

Month

Milk Volumes Gross cash receipts before deductions for hauling, Differences in gross cash 

1000s lbs. $1,000 

1/ Eight Orders refers to the eight Federal orders with participation in the Program since it began--the Appalachian, Central,

Mideast, Northeast, Pacific Northwest, Southeast, Upper Midwest, and Western orders. Effective April 1, 2004, the Western

3/ Program refers to the Dairy Forward Pricing Pilot Program.

order was terminated.

4/ Data have been revised for January, February, and June 2004.

2/ The apparent reductions in forward contract activity in July-Nov. of 2003, Jan.-May 2004, Sept. 2004, and Nov.-Dec. 2004 are

primarily a result of handlers' depooling of milk in these months. Economic conditions and the Federal order pricing 

system created conditions that made depooling both contract and non-contract milk advantageous to handlers. Although forward 

contracts for depooled milk generally remained active during these periods, contracts for depooled milk were outside

the scope of the Program. Effective April 1, 2004, the Western order was terminated.

Figure 4: Contract Milk Delivered Under Pilot Program

0

50

100

150

200

250

Sept. 2000

Dec. 2000

Mar. 2001

Jun. 2001

Sept. 2001

Dec. 2001

Mar. 2002

Jun. 2002

Sept. 2002

Dec. 2002

Mar. 2003

Jun. 2003

Sept. 2003

Dec. 2003

Mar. 2004

Jun. 2004

Sept. 2004

Dec. 2004

Millions of Pounds

Contract Milk
14

State Number of Producers Percent

Wisconsin 1113 55.54

Minnesota 477 23.80

Idaho 134 6.69

South Dakota 76 3.79

Illinois 53 2.64

Iowa 53 2.64

New York 2 32 1.60

Ohio 29 1.45

Missouri 11 0.55

Arkansas 6 0.30

Nebraska 5 0.25

Oklahoma 3 0.15

Oregon 3 0.15

Pennsylvania 3 0.15

Michigan 2 0.10

Utah 2 0.10

Tennessee 1 0.05

Indiana 1 0.05

Total 2,004 100.00 1

 Program Participating Producers refers to the total number of producers who delivered 

contract milk as part of the Dairy Forward Pricing Pilot Program.

2

 The number of producers for New York was revised from 37 to 32 for the study period of 

September 2000 through March 2002. The count for the total number of producers for the 

Program during the study period was revised from 1452 to to 1447.

Table 6. Program Participating Producers 1

 by State for the Period From September 2000 

through December 2004