The new year will not be starting out strong for most dairy producers as they can anticipate weaker milk checks in January, based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

As trade data continues to be released following the six-week government shutdown last fall, records indicate a favorable end to the 2025 year for U.S. dairy products.

In the news related to dairy farming as we begin February 2026: IDFA holds annual Dairy Forum, USDA shifts sterile fly dispersal efforts to defend U.S. border, CoBank: Dairy poised to help meet consumers growing demand for protein, and several awards were given across the industry.

Both feed costs and the milk price fell month over month for a DMC margin of $9.42 per hundredweight (cwt), triggering the first and only payment in 2025.

Anaerobic digesters have reshaped the dairy industry, providing a sustainable solution for manure handling and an alternative energy source for U.S. households. For the relatively small portion of those projects that receive funding through the USDA’s Rural Energy for America Program (REAP), that momentum now faces a temporary pause.

The influx of milk has pushed prices downward, and despite alternative revenue sources helping ease the pain on farms’ bottom lines, pressure is mounting on margins.

Based on latest USDA monthly Livestock Slaughter report data, the number of dairy cull cows marketed through U.S. slaughter plants in December 2025 was estimated at 248,400.

Nineteen states including California, Kansas and Idaho boosted milk production a combined 904 million pounds in December.

In the news affecting a dairy producer's bottom line the third week of January 2026: February Class I base milk price hits 68-month low, fluid milk sales were down 1.8% in November, the GDT index is higher again, and a reminder to sign up for the Milk Loss Program and HPAI biosecurity webinars.