The March 2023 announced U.S. average milk price fell 50 cents from February to $21.10 per cwt, the lowest since November 2021.

Monthly dairy cull cow marketing hit a 36-year high in March, topping 300,000 head for just the third month since the whole-herd buyout program.

The forecast for first-quarter beef production is lowered 25 million pounds, based on USDA Agricultural Marketing Service reports of federally inspected livestock slaughter, showing a slower pace of fed cattle slaughter and lower aggregate carcass weights than expected last month.

The March 2023 USDA data summarizes milk production prior to the fire the killed an estimated 18,000 cows at South Fork Dairy in Dimmitt, Texas, on April 10.

Compared to last month, the USDA raised the U.S. milk production estimate for 2023 slightly, but also raised Class III and all-milk price forecasts.

There’s still time and weather to impact cropping plans, but early indications are that acreage devoted to dry hay production will rebound slightly in 2023.

A slight increase in hay acreage and yield-boosting moisture conditions in some regions provide hope for increased forage production in 2023.

Factoring into dairy feed costs, 2023 dry hay acreage is expected to rebound slightly from last year’s 115-year low.

The February 2023 indemnity payments continue what looks to be a lengthy trend, with monthly margins projected to be below $9 for all months until October.

Here’s an update on risk management tools available through the USDA and/or USDA’s Risk Management Agency (RMA), as well as information impacting your milk check.