USDA’s July WASDE raised 2026 milk production slightly to 236.6 billion pounds on expectations of a larger cow herd and a decrease in milk output per cow.

In the news affecting a dairy producer's bottom line: The FARM Program opens comment period for version 2028, Rabobank provides an update on global dairy trade, high input cost concerns weigh on farmer sentiment, and Land O’Lakes Inc. announced an investment to expand dairy protein production in California.

May proved to be another enthusiastic month for U.S. dairy exports, with the year-over-year volume growth streak now reaching eight consecutive months as exports rose 14% in milk solids equivalent terms. All of this is despite low nonfat dry milk/skim milk powder (NDM/SMP) shipments – due to steep price comparison – reigning in what might have been a record month.

In the news related to dairy farming the first week of July 2026: The U.S. declines USMCA renewal in current form; NASS report shows corn planted acreage down 3%, soybean acreage up 5%; nominations are open for NMC’s National Dairy Quality Awards program, and World Dairy Expo cattle show entries are open too.

The Milk from Family Dairies Act, which aims to stabilize the dairy market, was introduced in the Senate on June 29, led by Peter Welch (D-Vermont) and co-sponsored by Bernie Sanders (I-Vermont). The bill would ensure market transparency and fair prices for dairy farmers, maintain consumer access to reliable and reasonably priced dairy products, and revitalize rural communities by establishing a Dairy Market Stabilization Program to ensure dairy farmers get a fair price for their milk based on their cost of production.

The Securing Agriculture’s Workforce Act was introduced in the House on June 30, led by House Agriculture Committee Chairman Glenn “GT” Thompson (R-Pennsylvania). The legislation would modernize agricultural workforce policy by updating the H-2A visa program and expanding access beyond seasonal workers.

While the market for Class IV milk is still strong, the markets are signaling a retreat is near. The June USDA Announcement of Class and Component Prices report indicated the Class IV milk price falling more than $2 from the month prior, and while the Class III price also fell, the gap between the two is closing as the markets search for balance.

The USDA National Agricultural Statistics Service (NASS) Agricultural Prices report, released June 29, established May’s Dairy Margin Coverage (DMC) program calculations. As the all-milk price rose 50 cents, the total feed costs rose 42 cents, boosting the DMC margin 8 cents to $10.62 per hundredweight (cwt) for the month.

Milk production across the U.S. has been rampant in 2026 with both processing capacity and global demand pressuring dairy farms to produce more, and a larger national dairy herd is helping keep the pace. Despite all the dynamics working in favor for U.S. dairy farmers, milk margins remain tight and risk management strategies remain critical.

In dairy-related news at the end of June 2026: Prairie Farms Family of Companies honors America’s 250th anniversary with donation of 250,000 servings of milk, dairy demand resilient despite mounting economic pressure on consumers, Utah State wins dairy checkoff’s New Product Competition, Midwest Dairy Accelerator showcases new opportunities for dairy, and Gonna Need Milk partners with Warner Bros. Pictures and DC Studios’ Supergirl to spotlight milk.