An ag economist says dairy farmers are expected to have another milk check deduction in July because of high cheese prices.

American Farm Bureau’s Michael Nepveux tells Brownfield he doesn’t anticipate a Dairy Margin Coverage payment for July following higher milk prices, but negative producer price differentials are another story.

“We do know for a fact that there have been massive negative PPDs for June and July.”

Analysis by American Farm Bureau finds during June and July, the difference between the classified value of milk and the component value of milk, how PPDs are calculated, across the seven component pricing orders was $1.2 billion. 

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