Quarterly average prices in January hit a new all-time high of $2,660 per head according to estimates from the USDA.

On Feb. 1, President Donald Trump signed three executive orders imposing new tariffs on goods from Mexico, Canada and China – the three biggest markets for U.S. agricultural commodities.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Jan. 31, 2025, which includes feed costs used to calculate the December 2024 Dairy Margin Coverage (DMC) program margins and indemnity payments. December’s margin came in at $13.38 per hundredweight (cwt), concluding a year of mostly confident margins for dairy producers.

Ten states including California, Arizona, New Mexico and Oregon reduced milk production a combined 317 million pounds in December.

The new year is taking shape with risk management policies offering enrollment for 2025 as the 2018 Farm Bill was granted a one-year extension, as well as the Federal Milk Marketing Order (FMMO) referendum passing with the new rule to take effect June 1.

Dairy cull cows marketed through U.S. slaughter plants in December lowest since 2007.

In this week's news: The Whole Milk for Healthy Kids Act of 2025 was introduced, Rabobank reports increasing milk production costs, and consumers are moving away from plant-based beverages.

In news affecting dairy's bottom line in mid-January, the Class I base price edges higher and the GDT index is back up. However, November fluid milk sales are down compared to the same month last year.

In dairy news this week: The USDA added six more states for national HPAI milk testing, the U.S. partners with Indonesia to enhance its dairy sector, and Dairy's Foundation awards education and outreach grants.