Calculation of Advanced Class III and Class IV Skim Milk Pricing Factors

Advanced Pricing Factors are calculated using the weighted
average of prices for the two most recent weeks that were
released before the 23rd of the preceding month.
In the folowing example, the Class III advanced butterfat
pricings factor for Dec 2017 is calculated by using the
bi-weekly (weighted) average of the two weeks preceding it.
These prices were then released on Nov 17, 2017

NASS Biweekly Average Prices

The advanced prices calculated in the section use biweekly
average U.S. NASS survey prices. These biweekly average prices
are calculated by a weighted average.

These biweekly average prices are as follows:

AA Butter 2.2636
Cheddar Cheese 1.7641
Dry Whey 0.3561
Nonfat Dry Milk 0.7563

Advanced Class III Skim Milk Pricing Factor

= (Protein Price * 3.1) + (Other Solids Price * 5.9)

= (2.4340 * 3.1) + (0.1653 * 5.9)

= 8.52

So, the Advanced Class III Skim Milk Pricing Factor for Dec 2017 is 8.52

Advanced Class IV Skim Milk Pricing Factor

= Nonfat Solids Price * 9.0

= 0.5933 * 9.0

= 5.34

So, the Advanced Class IV Skim Milk Pricing Factor for Dec 2017 is 5.34