Nineteen states including California, Texas and Kansas boosted milk production a combined 712 million pounds in January.

Federal Milk Marketing Order (FMMO) uniform milk prices dwindled more than $1 from December 2025 in most orders, the result of robust production and waning consumer demand.

USDA WASDE raised 2026 milk production and prices, increased beef output and fed cattle prices, and projected steady corn, soybean and cottonseed prices.

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.

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.

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.

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.

Federal Milk Marketing Order (FMMO) uniform milk prices improved in most regions in December, with largest increases in those with higher percentages of milk pooled through Class I markets.

The enrollment period for the Dairy Margin Coverage (DMC) program for the 2026 coverage year started on Jan. 12. Based on current milk and feed prices and futures markets, the 2026 milk income margins could be the lowest since 2023.