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.

Since the July 2025 WASDE, corn-harvested area has surged 4.5 million acres. Notably, the record corn crop in 2025 exceeds the prior high set in 2023 by 1.7 billion bushels or over 40 million tons.

The USDA released its Ag Prices report on Dec. 31, including factors used to calculate the November 2025 Dairy Margin Coverage (DMC) program margins.

Most dairy producers should anticipate smaller milk checks again this month, based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

The past year provided ample opportunities for dairy producers to capitalize on market conditions with both longstanding and new risk management strategies.

USDA data show Americans’ per capita consumption of dairy is up 0.6% over the past five years, 8% over the past 15 years and 12% over the past 30 years.