September Class I Milk Price Fell to $17.04 per cwt
The Federal Milk Marketing Order base Class I milk price for September 2026 was set at $17.04 per hundredweight, below the August level. The reduction ended the rise recorded in fluid-milk benchmarks during the middle of the year.
The pricing calculation combines the average of the advanced Class III and Class IV skim-milk factors with an addition of $0.74 per hundredweight, alongside the advanced butterfat value. For September, the Class III skim factor was $11.76 per hundredweight, while the Class IV skim factor reached $12.16.
Class IV skim remained above Class III. Nonfat dry milk averaged $1.5603 per pound during the two-week National Dairy Products Sales Report reference period. The source attributed the strength of the Class IV factor to export demand and firm nonfat dry milk prices.
The advanced butterfat factor declined to $1.5164 per pound, based on an average surveyed butter price of $1.4794 per pound. The source linked the weaker butter value to domestic cold-storage inventories and seasonal manufacturing volumes. Cheese values also eased: the weighted average for 40-pound blocks and 500-pound barrels was $1.6216 per pound.
The $17.04 base rate will be adjusted for each regional marketing order through local Class I location differentials. Those differentials range from $1.60 to more than $6.00 per hundredweight, depending on the geographic zone. The Class I extended-shelf-life adjustment for eligible long-life fluid dairy products was calculated at $0.81 per hundredweight.
The lower base rate changes the raw-milk cost used by fluid bottlers and commercial handlers before the autumn increase in school-related demand. For dairy farmers, differing movements in commodity values produced uneven returns among milk classes. International demand for milk powders supported the Class IV skim factor, while weaker butter prices limited the overall Class I increase.
