In the news affecting a dairy producer's bottom line the first week of June 2026:
- HPAI returns to Texas, Utah
- Farmer sentiment slips again due to high input costs
- GDT index dips 0.6%
- June FSA interest rates up slightly
- FARM Program publishes 2026 drug residue prevention manual
HPAI returns to Texas, Utah
Texas has reported its first case of highly pathogenic avian influenza (HPAI) for 2026.
Following observed clinical signs, including sick cows and milk production drops, samples were submitted to the Texas A&M Veterinary Medical Diagnostic Laboratory and confirmed at the National Veterinary Services Laboratory on May 30.
The dairy is currently under quarantine as part of existing response protocols, and state and federal officials are working closely to mitigate disease spread. In addition, epidemiological investigations are being conducted to evaluate the situation further.
Farther north, officials with the Utah Department of Agriculture and Food (UDAF) were notified on June 1 of a sample from a dairy in Cache County that tested positive for HPAI.
This is the first detection of the dairy HPAI strain in Utah since January 2025.
As a result, UDAF is enacting mandatory weekly surveillance for HPAI in dairies in the county. In the event of a positive test, the dairy will be placed under a quarantine and no movement of lactating cattle will be permitted on or off the facility, with the exception of cows going directly to slaughter.
According to the USDA Animal and Plant Health Inspection Service (APHIS), there is no concern that this circumstance poses a risk to consumer health or the safety of the commercial milk supply.
Farmer sentiment slips again due to high input costs
Farmer sentiment decreased from April to May, attributable to a decline in current conditions, according to the latest Purdue University/CME Group Ag Economy Barometer.
“The percentage of producers who expected good times over the next five years was 37 percent in May, which is 16 percent lower than in the May 2025 survey report,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Concerns about input costs reached a new high, and high input costs were identified as the most important factor limiting improvements in financial performance.
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 June 2, reflect ag producer outlooks as of May 11-15.
GDT index dips 0.6%
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is down 0.6% in the auction held June 2, after trading higher the last two events.
Compared to the previous auction, prices for individual product categories were mostly higher. Anhydrous milkfat was up 5.3%, and lactose was up 4.6%. Buttermilk powder increased 3%, while cheddar cheese and butter increased 1.8% and 1.2%, respectively. Trading lower were mozzarella, down 4.6%; skim milk powder, down 3%; and whole milk powder, down 2.2%.
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 June 16.
June FSA interest rates up slightly
The announced interest rates on loans through the USDA’s Farm Service Agency (FSA) are up slightly from last month. As we begin June 2026, interest rates for operating and ownership loans (compared to May) are as follows:
- Farm operating loans (direct): 5%, up from 4.75%
- 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.
FARM Program publishes 2026 drug residue prevention manual
The FARM Program released its 2026-27 Milk & Dairy Beef Drug Residue Prevention Reference Manual, equipping farmers with an educational tool that promotes best management practices for responsible and judicious use of antimicrobials in dairy cattle.
The updated manual has timely information about the FDA’s conditionally approved and emergency use authorizations of drugs to combat New World screwworm. It also includes the FDA’s guidance document for industry No. 273: “Defining Durations of Use for Approved Medically Important Antimicrobial Drugs Fed to Food-Producing Animals” (GFI No. 273), finalized and announced in February.
“The U.S. dairy industry is committed to antibiotic stewardship and judicious use of all medications used for dairy cattle,” says Dr. Jamie Jonker, National Milk Producers Federation’s chief science officer. “The Drug Residue Prevention Manual continues to be a trusted resource for dairy farmers when making educated choices with their veterinarians to care for their animals.”
The manual serves as a resource for producers and veterinarians, and includes information on:
- Residue prevention best practices
- Recordkeeping and herd health
- Drug administration
- Culling of animals
- Residue testing
- Drug classes
- Approved drugs and screening tests
The manual is available for download on the FARM Program website. The pocket guide will be available later this month.
