26 
BULLETIN 1400, U. S. DEPARTMENT OF AGRICULTURE 
PRICE OF MILK 
The index which has been used to measure the efficiency of the 
dairy is equally dependent upon the value of the feed used in milk 
production and the value of the milk sold. Hence, the production 
per cow, value of feed consumed per hundredweight of milk pro- 
duced, and the price received for the milk per hundredweight are the 
three factors which determine the dairy index. The extent to which 
the index depends upon the price received for the milk is shown in 
Table 23. The milk prices shown in this table have been adjusted 
to a 3.7 per cent fat basis. 
Table 23. — Farms with dairy herds classified by the dairy index and the average 
price received for milk l 
Price of milk, in 
dollars, per 100 
pounds 
Number of farms with specified dairy indexes 
Total 
-25 to 
dol- 
lars 
OtO 
25 
dollars 
25 to 1 50 to 
50 75 
dollars dollars 
75 to 
100 
dollars 
100 to 
125 
dollars 
125 to ! 150 to 175 to 
150 175 200 
dollars dollars dollars 
200 to . 225 to 
225 250 
dollars dollars 
1.50 to 1.70 
1 
1 
1 
9 
6 
1 
1 
1 
1.70 to 1.90 
8~ 
15 
25 
8 
2 
3 
26 
41 
16 
2 
1 
1 
4 
1.90 to 2.10 
1 
4 
18 
36 
19 
4 
2 
17 
2.10 to 2.30 
3 
29 
14 
5 
1 
1 
1 
2 
1 
72 
2.30 to 2.50 1 
5 
6 
2 
2 
1 
1 
1 
1 
144 
2.50 to 2.70 . 
1 
67 
2.70 to 2.90.-- . 
14 
2.90 to 3.10 
6 
3.10 to 3.30 
1 
....... 
4 
3.30 to 3.50 . 
1 
3.50 to 3.70 .. 
1 
1 
4 
3.70 to 3.90 
3.90 to 4.10 
1 
:::::::r 
i 
2 
4. 10 to 4.30 
1 
4 
4.30 to 4.50 .. 
! 
1 
4.50 to 4.70...... 
1 
2 
4.70 to 4.90 
4.90 to 5.10 
1 

1 
5.10 to 5.30 
1 
1 
2 
5.30 to 5.50 
1 
1 
Total 
Average 
price 
2 
$2.20 
19 
$2.22 
58 
$2.36 
93 
$2.42 
84 
$2.45 
57 
$2.61 
18 
$2.70 
5 
$3.12 
8 
$3.62 
1 
$5.20 
2 
$3.40 
347 
i Prices adjusted to a common basis of 3.7 per cent butterfat. 
The group of farms receiving prices of $4 or more for their milk are 
farms producing grade A or grade AA milk, which commands a 
premium for high quality. This is obviously a great help in making 
a good showing for the dairy enterprise, but even with these high 
prices four herds fell below a $125 index and two below a $75 index, 
showing that high price alone is not sufficient to insure good returns 
from the dairy enterprise. 
Many herds whose milk sold under $3 yet showed dairy indexes 
of over $100 and some even over $150, showing that by unusually 
efficient dairy management good returns could be obtained even when 
the milk was sold at a moderate price. 
The market for the special grades of milk is rather limited, and 
for the present at least does not offer very many more men an oppor- 
tunity to realize a higher price for their product. In one way, how- 
ever, the price received for milk is subject to the farmers' control, 
and that is with regard to the seasonal distribution of production. 
Fluid milk nearly always commands a higher price in the winter or 
bam season than during the pasture season. In addition, the " basic- 
surplus " plan of payment used in the Philadelphia market makes an 
even greater difference between the actual price for summer and 
winter milk. The essential features of this plan are as follows (1): 
