Business / Agriculture / Class I Differential: Under federal milk marketing orders, the minimum price a processor must pay for milk used for fluid consumption (Class I milk) is the basic formula price plus the Class I differential. The Class I differential varies by about $3.00 per hundredweight (cwt.) Between the Upper Midwest and Southeast Florida. The Class I differential accounts for the costs of transporting milk, the added costs of marketing milk going into fluid milk products, and the higher cost of producing Grade A milk required for fluid products.
Class Noun Synonyms: rank, grade, level, order, stratum, caste, lineage, birth, pedigree, stock, extraction, descent
Class Verb Synonyms: classify, group, arrange, assort, type, categorize, rank, grade, rate, order
Business / Agriculture / Multiple Basing Points: A method of regional pricing in milk marketing orders that would allow more than one basing point, or 'surplus area,' to be used. Surplus areas are administratively defined as areas with low Class I u MORE
Business / Agriculture / Fluid Differential: In federal milk marketing orders, the Class I differential is the amount added to the basic formula price to determine a region’s minimum price for milk used for fluid (drinking) purposes. MORE