Despite dairy margins strengthening – particularly in Class III and Class IV – which offered an increase in the all-milk price and offset sturdy feed costs, it was not enough for February’s margin to sit above the maximum payment threshold of the DMC program.

As we look to the second quarter of 2026, dairy markets have improved and margins are historically strong with forecasts playing in producers’ favors, particularly with incremental improvements in Class III and Class IV.

In dairy-related news the fourth week of March 2026: A survey reveals dairy producer concerns over GHG data requests, Bel invests $200 million to double Babybel production capacity, the All-American Dairy Show is seeking a chair for its Youth Dairy Cattle Judging Contest, and applications are open for the second annual Midwest Dairy Accelerator.

Based on latest USDA monthly Livestock Slaughter data the number of dairy cull cows marketed through U.S. slaughter plants in February 2026 was estimated at 237,300.

Twenty states including Kansas, California and Texas boosted milk production a combined 602 million pounds in February.

In the news affecting a dairy farmer's bottom line the third week of March 2026: April Class I base price gets a boost to $18.66 per cwt, the dairy checkoff launches an online database to help farmers find grant opportunities, fluid milk sales start the year lower, and applications are now open for Holstein Foundation memorial scholarships.

The momentum of U.S. dairy exports in 2025 carried on as the calendar turned to 2026. January proved international interest in U.S. dairy products remains as year-over-year growth reached 12% in milk solids equivalent volume, with cheese and butterfat continuing to lead the way.

Prices for U.S. replacement dairy cows dropped in January, falling back to levels similar to those seen in April 2025, according to latest quarterly estimates from the USDA. U.S. replacement dairy cow prices averaged $2,860 per head in January 2026, down $250 (9%) from October 2025 but up $200 (7%) from January 2025.

Federal Milk Marketing Order (FMMO) uniform milk prices rose 40 cents in February from January’s $17 per hundredweight (cwt) to start the new year. The price improvement is due in part to the USDA’s announcement to purchase dairy products for food banks and nutrition assistance programs across the country.

In the news affecting dairy farms the third week of March 2026: A class action lawsuit alleges price fixing in the U.S. fertilizer industry, most of the U.S. rented farmland is owned by non-farmers, and an agreement between Ecuador and the U.S. improves dairy market access.