The dairy industry has faced several years of bear markets and just when things looked like they were going to turn around in 2020, COVID-19 hit. Reduced foodservice demand, increased retail demand, and government purchases through the Food Box Distribution program have all focused more attention on the Federal Milk Marketing Order (FMMO) pricing system. The impact was a record-large spread between prices for the various milk classes, de-pooling of milk, and milk check deductions through producer price differentials. Though not directly related, the timing is notable that the American Farm Bureau Federation (AFBF) has released a new policy proposal for FMMO reform. AFBF, in fact, convened a working group for updating the FMMO a...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.