- GDT index moves higher in fifth consecutive event
- Munch: Dairy Margin Coverage program is showing its limits
- DMI CEO announces planned retirement
- Farmer sentiment rebounds
- March FSA interest rates slightly higher
- USDA launches ‘One Farmer, One File’ initiative
- NMPF: Milk production, domestic protein demand remain strong
- Edge Dairy Farmer Cooperative announces $10,000 in scholarships
GDT index moves higher in fifth consecutive event
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up 5.7% in the auction held March 3. This carries on the trend of higher trading events since the start of the year.
Compared to the previous auction, prices for individual product categories were mostly higher. Skim milk powder was up 9.1%. Mozzarella was up 7.9% and butter was up 6.1%. Anhydrous milkfat was up 5.7%, and whole milk powder and cheddar cheese were up around 4.5%. Lactose was down 3.9%, and buttermilk powder was down 0.2%.
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Inalpi (Italy), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is March 17.
Munch: Dairy Margin Coverage program is showing its limits
In a recent American Farm Bureau Federation (AFBF) Market Intel, Danny Munch examined the Dairy Margin Coverage (DMC) program and how it has held up in recent market conditions.
DMC has delivered more than $2.7 billion in net support since 2019 and exceeded $1 billion in payments in both 2021 and 2023, providing critical countercyclical protection during severe margin compression.
However, recent conditions expose structural limitations.
“Because DMC reflects only national feed costs, and not the cost of raising homegrown feed, it did not trigger payments for most of 2025, despite a 4 dollar per cwt drop in the all-milk price and historically high costs of production for row crops,” Munch wrote. It also does not account for variations in regional feed costs.
In addition, labor, veterinary, energy, capital recovery and other overhead costs are now up roughly 21% since 2021, and these non-feed expenses are not captured in the DMC formula.
Milk markets have softened over the past year. The U.S. all-milk price averaged roughly $19 per cwt in December 2025, down more than $4 since January.
“A 4 dollar decline in milk prices normally suggests the safety net would engage. Yet over the past year-and-a-half, Dairy Margin Coverage payments have been limited. The reason lies in the program’s design,” he wrote. “DMC protects a national income-over-feed-cost margin, not total profitability. When milk prices and feed costs decline together, the margin can remain above trigger levels even as other operating expenses stay elevated.”
DMI CEO announces planned retirement
Barbara O’Brien, president and CEO of Dairy Management Inc. (DMI) and the Innovation Center for U.S. Dairy, announced she will retire at the end of her five-year term this fall.
O’Brien was unanimously approved by the DMI board of directors as CEO on Oct. 11, 2021, and has since led the organization through a period of strategic alignment, innovation and measurable growth on behalf of America’s dairy farmers and importers.
O’Brien’s planned retirement initiates a leadership transition designed to ensure continuity and long-term success for the dairy checkoff. The DMI board of directors has begun succession planning efforts to support a smooth transition and continued focus on delivering value for dairy farmers and importers. O’Brien will continue leading the organization through this period, working closely with the board and leadership teams to support continuity and execution of strategic priorities.
Farmer sentiment rebounds
Farmer sentiment increased in February due to an improved perception of current conditions, according to the latest Purdue University/CME Group Ag Economy Barometer.
“There was a large disparity in expectations between crop and livestock producers. Approximately 63 percent of respondents expected bad times for crop producers, while only 17 percent expected bad times for livestock producers,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Despite the prospects for upcoming payments under the Farmer Bridge Assistance Program, the percentage of producers who thought the U.S. was heading in the right direction has dropped from 75% in December to 59% in February.
Although many operations are planning to expand, persistent concerns about input costs, commodity prices and the broader direction of the U.S. economy appear to be limiting optimism about the years ahead.
The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released March 3, reflect ag producer outlooks as of Feb. 2-6.
March FSA interest rates slightly higher
The announced interest rates on loans through the USDA’s FSA are slightly higher. As we begin March 2026, interest rates for operating and ownership loans (compared to February) are as follows:
- Farm operating loans (direct): 4.75%, up from 4.625%
- Farm ownership loans (direct): 5.875%, up from 5.75%
- Farm ownership loans (direct, joint financing): 3.875%, up from 3.75%
- Farm ownership loans (down payment): 1.875%, up from 1.75%
- Emergency loan (amount of actual loss): 3.75%, unchanged
The FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. For more information, producers can contact their local USDA Service Center.
USDA launches ‘One Farmer, One File’ initiative
U.S. Secretary of Agriculture Brooke L. Rollins announced the “One Farmer, One File” modernization with sweeping technological improvements at the USDA. The initiative involves creating a single, streamlined record that follows the farmer – no matter where they go in the USDA system.
“Every single day at USDA, our focus is on making life easier, more profitable and more rewarding for the American farmer,” said Secretary Brooke Rollins. “Our government for the people by the people should be modern, efficient and respect taxpayer dollars. This modernization of old, duplicative, wasteful systems has one goal in mind, improve our customer service so the people we serve are able to farm and feed America and the world. ‘One Farmer, One File’ prevents our farmers from duplicating tasks while increases their productivity and time in the field.”
USDA’s Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS) and Risk Management Agency (RMA) work with agricultural producers on a wide range of programs and services, from establishing a farm number to reporting acres planted, and from getting capital to recovering from disasters.
The goal of “One Farmer, One File” is to reduce the administrative burden for farmers. Additionally, this effort will make program delivery more efficient, save time for USDA staff and decrease spending on disparate information technology systems.
The “One Farmer, One File” initiative is part of a broad modernization effort to unify all FSA, NRCS and RMA systems. This uniformed system will retire legacy systems and remove agency silos. The USDA began work on this system in 2025 and plans to greatly advance the effort in 2026. The USDA anticipates completing the project in 2028.
NMPF: Milk production, domestic protein demand remain strong
Milk production is still strong, up 4.2% overall, with milkfat production up 5.6% year over year, according to a report from the National Milk Producers Federation (NMPF).
Summarizing dairy markets in the February 2026 Dairy Management Inc./NMPF Dairy Market Report, several signs of particularly strong domestic protein demand shone through in recently released November data: Commercial disappearance of all products on a skim solids basis (which includes protein) rose 4.8% September-November 2025 over a year prior, cheese saw an increase in domestic use of 2% after several months of declines, and stocks of whey protein concentrate fell 16% as demand outpaces supply.
Exports also rose, with butter exports nearly tripling (+199%) and American-type cheeses doubling (+119%). However, DMC margins fell to $9.42 per cwt, just under the $9.50 per cwt maximum coverage level.
The Consumer Price Index eased month-over-month to 2.4% annually in January 2026, from 2.7% in December 2025, signaling cooling inflation. Dairy products continue to give consumers a break from inflation at the grocery store, with prices for almost all products falling since early 2025, exception for cheddar cheese.
For more information on commercial use, dairy trade, milk production, product inventories, prices and margins, view the February 2026 Dairy Market Report.
Edge Dairy Farmer Cooperative announces $10,000 in scholarships
Edge Dairy Farmer Cooperative will once again offer $10,000 in secondary education scholarships to its membership. Edge is proud to award the children of its members who exemplify the voice of milk through their education, career aspirations and future goals. Applications are now being accepted and will remain open until April 17.
Two $2,000 scholarships will be awarded to current students pursuing a degree in a four- or two-year program, and three $2,000 scholarships will be awarded to high school seniors.
Applicants must be high school seniors, graduates or college undergraduates. They must be enrolled or planning to enroll in a full-time course of study at an accredited four-year college or university or a two-year program at a technical, junior or community college. The area of study does not need to be agriculture-related, but applicants must be dependents of an Edge member.
Scholarship recipients will be selected based on academic achievement, leadership, participation in school and community activities, academic honors, goals and aspirations, recommendations and work experience.
The full application and guidelines can be found on the Edge website.
