Progressive Dairy summarizes factors potentially impacting dairy producer income based on the USDA’s latest World Ag Supply and Demand Estimates (WASDE) and Crop Production reports.

Without approval in the 2023 Farm Bill, the Dairy Margin Coverage program expires at the end of the year.

Milk checks for September production will again reflect stronger protein and Class III milk prices. That will change on October production, with struggling cheese prices weakening the Class III price and widening the Class III-IV price spread, adding substantial Class IV depooling incentives.

Here is a brief look at the news affecting dairy producers during the first week of October 2023.

Compared to a month earlier, U.S. average feed costs were lower and milk prices were up, pushing the milk income margin up almost $3 per hundredweight from July’s historic low.

From this week's USDA World Ag Supply and Demand Estimates (WASDE) and Crop Production reports to Rabobank's quarterly Global Dairy update, Progressive Dairy summarizes factors potentially impacting dairy producer income.

Private-lender interest rates on agricultural loans are moving higher and so are rates on loans through the USDA’s Farm Service Agency.

The milk income over feed cost margin should have finally reached bottom in July.

Milk checks for August production will reflect stronger protein and Class III milk prices and the highest Class IV milk price since January. A narrower price spread between Class III-IV milk prices could start to bring more Class IV milk to FMMO pools.