Margins appear encouraging with the recent swell in Class III prices and improved feed costs. Cheese exports to Mexico have also been critical for U.S. dairy producers as shipments to China and Southeast Asia have slowed. Yet, with extreme weather conditions and the continued spread of avian influenza, having a strategy to manage risk is essential.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report May 31, which includes feed costs used to calculate April Dairy Margin Coverage (DMC) program margins and indemnity payments. A $9.60 per hundredweight (cwt) margin was the result of a rally in milk during the second half of the month to offset the steady feed markets.

The dairy landscape is seeing rapid, much-welcomed improvements as milk markets rallied in May with Class III futures surpassing $20 per hundredweight (cwt), $4 above April’s prices. Coupled with feed costs receding, dairy margins are looking better for the remainder of the year.

In recently released news, the USDA offers funding for producers affected by influenza A (H5N1), dairies that dissolved in early 2024 are eligible for Dairy Margin Coverage enrollment, farmer sentiment declines, and announcements from dairy processors and cooperatives.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report April 30, which includes feed costs used to calculate March Dairy Margin Coverage (DMC) program margins and indemnity payments. Consistent feedstuff prices and a slight improvement in the all-milk price brought the average milk income margin to $9.65 per hundredweight (cwt).

As predicted, milk prices recovered some in April with Class III at $15.57 per hundredweight (cwt) during the last full week of the month and futures jumping more than $1 for May and June. Unpredictability is still expected in the marketplace, and producers are encouraged to enroll in the Dairy Margin Coverage (DMC) safety net program.

Here is a summary of the latest news affecting the financial health of U.S. dairy operations.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report March 28, which includes feed costs used to calculate February Dairy Margin Coverage (DMC) program margins and indemnity payments.