Editor's note: This article previously reported an incorrect feed cost of $10.89 per hundredweight (cwt) and resulted in a DMC margin of $10.41 per cwt in June 2025. Upon further review of the calculations, we have revised the article to reflect the new feed cost and DMC margin. What you read below is accurate as of Aug. 1, 2025.
The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report July 31, which includes feed costs and milk prices used to calculate the June Dairy Margin Coverage (DMC) program margins and indemnity payments. June’s margin was $11.10 per hundredweight (cwt) due to cheaper feed costs, particularly corn which had the lowest monthly price since January.
A peek at June DMC
DMC program margin factors compared to the previous month:
- Alfalfa hay: $244 per ton, down $33
- Corn: $4.47 per bushel, down 17 cents
- Soybean meal: $280.70 per ton, down $8.05
- Total feed costs: $10.20 per cwt, down 70 cents
- Milk price: $21.30 per cwt, no change
- Margin above feed cost: $11.10 per cwt, up 70 cents
Source: USDA Farm Service Agency, National Agricultural Statistics Service and Marketing Service, July 31, 2025
The all-milk price remains unchanged from May to June
After the early days in June indicated the all-milk price was falling, the final days of the month rebounded and left June with an all-milk price of $21.30 per cwt, unchanged from the previous month. Although, the price is $1.50 lower than June 2024.
In the 24 major dairy states, seven states followed suit and had no change in the all-milk price from May to June, including California, Florida, Iowa, New Mexico, New York, Pennsylvania and Texas. An additional nine saw an increase in the all-milk price month over month with Ohio posting the largest improvement at $22.50 per cwt in June, up 70 cents from May. Remaining states recording month-over-month declines in the all-milk price, ranging from a 10-cent to 90-cent slip. Arizona posted the greatest price decline at $20.10 per cwt, down 90 cents from May.
The year-over-year comparison on a state-by-state basis was similar to the average all-milk price. Every state in the 24 major dairy states reported a steep price fall comparing June 2025 to June 2024. The smallest year-over-year decline was in Wisconsin, down 80 cents per cwt, while the largest year-over-year decline was in Arizona, down $2.70 per cwt.
Corn prices pull feed costs down
While the price of feed commodities used to calculate the feed cost for the DMC margin all stumbled in June, it was the corn price that had the most pull. At $4.47 per bushel, June’s price for corn was the lowest since the beginning of 2025 when January reported a price of $4.29 per bushel.
Here’s a breakdown of each commodity price used to calculate the total feed cost from the DMC margin in June:
- The average cost of corn was $4.47 per bushel, down 17 cents from May but only 1 cent lower than the same month a year ago.
- Dairy-quality alfalfa hay was $244 per ton, down $33 from the previous month and down $12 from June 2024.
- At $280.70 per ton, June’s price for soybean meal fell $8.05 compared to June’s price and was down $103.40 from the same time last year.
The DMC feed cost each month is calculated summing three numbers: (1) the corn price per bushel times 1.0728, plus (2) the soybean meal price per ton times 0.00735, plus (3) the alfalfa hay price per ton times 0.0137.
As all feed prices fell, the feed cost for June settled at $10.20 per cwt of milk sold. June’s feed cost was down 70 cents cent from May but 94 cents lower than June 2024.
June’s margin holds steady
The realized DMC margin for June was $11.10 per cwt, 70 cents higher than the previous month, with the all-milk price remaining the same as feed costs shifted a bit. June's DMC margin is reflective of margins last seen in March, yet still not low enough to trigger any indemnity payment through the DMC program.
Enrollment details for the 2025 program were not yet available at the time of this writing.
Margin predictions for July
The DMC online decision tool forecasts the July margin at $11.54 per cwt with the all-milk price coming in at $21.15 per cwt and the feed cost forecast at $9.61 per cwt as of July 30. The remainder of the year looks positive with the average DMC margin for 2025 forecast at $12.11 per cwt with no indemnity payments issued for the 12 months of the year. However, markets do change.
Updates to DMC program through One Big Beautiful Bill
There are revisions to the DMC program as a result of the One Big Beautiful Bill Act being signed into law earlier in July. Not only does the legislation extend the program through 2031, it also allows producers to update their production history to the highest annual volume of 2021-23 and offers a 25% discount on premiums for producers committed to five years of enrollment during the 2026 sign-up period.
Most notably, the law increases the annual limit on Tier I coverage to 6 million pounds effective in the 2026 program year. This change allows more milk to be covered through the program, although the DMC program continues to provide the greatest benefit to smaller farms, according to HighGround Dairy. (Read: One Big Beautiful Bill signed into law, increase estate tax exemption)
