Following the announcement of the federal government shutdown, Federal Milk Marketing Orders (FMMOs) released their individual reports on September FMMO Class and Component Prices Oct. 1. The reports indicated another month of sinking prices in Class II and Class IV with the latter taking the biggest hit, down $2.33 per hundredweight (cwt) from August at $16.17 per cwt.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Sept. 30, which includes feed costs and milk prices used to calculate the August Dairy Margin Coverage (DMC) program margins and indemnity payments. August’s margin was $11.52 per hundredweight (cwt) as a result of corn prices falling more than a quarter and milk prices rising a dime.

In dairy-related news as we near the end of September 2025: The USDA issues second economic assistance payment to farmers; ADM, Alltech join together in new North American animal feed venture; CoBank looks at the U.S. butterfat boom; Darigold names Amy Humphreys chief executive officer; and Skylar Diggins debuts puffer jacket made with milk.

Nineteen states including Idaho, Texas and Kansas boosted milk production a combined 654 million pounds in August.

As fall arrives and a new month approaches, the dairy industry is buzzing with concern over falling milk prices as domestic supply flows with strong outputs of butter and cheese, and exports remain strong, particularly with cheese products turning out record volumes month over month.

In the news affecting dairy producers' bottom lines in the middle of September 2025: the October Class I base milk price falls to $18.04, the Federal Reserve makes its first rate cut since December, the GDT index is down slightly, and fluid milk sales were down in July.

The milk production forecast for 2025 is raised on higher cow inventories and a faster rate of growth in milk output per cow. Estimated at 230 billion pounds of milk, it was raised 800 million pounds from last month’s report.

In dairy-related news the second week of September 2025: Legislation introduced to safeguard farmers’ privacy and protect USDA data, Danone announces Ohio yogurt plant expansion, Milk’s Got Game returns, and 2025 Expo en Español topics are outlined.

Following a mixed bag of milk prices in July, the August Federal Milk Marketing Order (FMMO) Class and Component Prices report released Sept. 4 indicates milk prices declined for Classes II, III and IV, with Class IV showing the largest drop of 39 cents per hundredweight (cwt) due to butter and nonfat dry milk prices also coming down.