The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Sept. 30, which includes feed costs and milk prices used to calculate the August Dairy Margin Coverage (DMC) program margins and indemnity payments. August’s margin was $11.52 per hundredweight (cwt) as a result of corn prices falling more than a quarter and milk prices rising a dime.

In dairy-related news as we near the end of September 2025: The USDA issues second economic assistance payment to farmers; ADM, Alltech join together in new North American animal feed venture; CoBank looks at the U.S. butterfat boom; Darigold names Amy Humphreys chief executive officer; and Skylar Diggins debuts puffer jacket made with milk.

The U.S. average prices received for cull cows (beef and dairy, combined) in July 2025 averaged $157 per cwt, up $15 per cwt from July 2024 setting a new all-time high for cull cow prices.

Nineteen states including Idaho, Texas and Kansas boosted milk production a combined 654 million pounds in August.

In dairy-related news the last full week of September 2025: An animal affected by New World screwworm was found just 70 miles south of the U.S.-Mexico border, dairy product contest awards announced, checkoff groups enhance dairy presence in schools and World Dairy Expo forage seminars are announced.

As fall arrives and a new month approaches, the dairy industry is buzzing with concern over falling milk prices as domestic supply flows with strong outputs of butter and cheese, and exports remain strong, particularly with cheese products turning out record volumes month over month.

In the news affecting dairy producers' bottom lines in the middle of September 2025: the October Class I base milk price falls to $18.04, the Federal Reserve makes its first rate cut since December, the GDT index is down slightly, and fluid milk sales were down in July.

On Sept. 15, the USDA Animal and Plant Health Inspection Service (APHIS) National Veterinary Services Laboratories (NVSL) confirmed a detection of highly pathogenic avian influenza (HPAI) H5N1 clade 2.3.4.4b, genotype B3.13 in a dairy cattle herd in Nebraska.

The milk production forecast for 2025 is raised on higher cow inventories and a faster rate of growth in milk output per cow. Estimated at 230 billion pounds of milk, it was raised 800 million pounds from last month’s report.