The start of the new year predicted favorable margins throughout 2025. But as the spring flush arrives and consumer spending softens some, while at the same time headwinds are expected for the export markets, new concerns have arisen for the remainder of the year.

The USDA’s World Ag Supply and Demand Estimates (WASDE) report offers forecasts for dairy, beef and feedstuffs.

Here’s an update on interest rates from the fourth quarter of 2024 as reported by Federal Reserve districts that share data impacting dairy finances.

Small declines in milk prices and climbing feed costs give way to tighter margins as we head into the spring months. Yet, margins are still swaying in a dairy producer’s favor.

With 216 filings, farm bankruptcies were up 55% from 2023. Declining farm receipts, primarily in crop markets, led to an increase in the number of U.S. farms filing for Chapter 12 bankruptcy in 2024.

In recent years, dairy farming costs have risen across several categories, posing challenges to farm profitability. However, not all costs are beyond a farmer’s control. By focusing on specific actionable items, farmers can manage expenses effectively without negatively impacting cow health or milk production.

Everywhere we look, there is some activity, product, project, etc., attached to the word "sustainability." While some would think it's the overuse of a catchy word, it really makes you wonder if it's a marketing tool or if we're really contributing to sustainable agriculture. A fair question, to be honest. But the most important question is: What does sustainability mean?