The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report March 31, which includes feed costs and milk prices used to calculate the February Dairy Margin Coverage (DMC) program margins and indemnity payments. February’s margin was $13.12 per hundredweight (cwt), the result of an improved market for corn coupled with a 50-cent drop in the all-milk price.

Even with evolving trade dynamics, the global dairy market is looking to see growth in 2025. Analysts at Rabobank anticipate dairy farmers worldwide will see higher revenues due to elevated milk prices. Higher farmgate milk prices will lead to supply expansion following 2024’s weaker milk production in key exporting regions.

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.

Dairy cull cows marketed through U.S. slaughter plants in February lowest since 2008.

Nineteen states including California, Wisconsin, Minnesota and Washington reduced milk production a combined 554 million pounds in February.

In the news this week: Feed additive legislation has been reintroduced in House, Chobani announces a $500 million expansion in Idaho, and dairy show ring guidelines have been updated.

In the news affecting dairy producers' bottom lines the third week of March 2025: Class I base milk price falls again for April, the USDA begins disbursement of economic assistance to farmers, Hilmar opens new Kansas facility, and more scholarships are available.

Making headlines the second week of March 2025 includes the EPA revising the Waters of the U.S. rule, China's tariffs on U.S. dairy and fluid milk sales for January.