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.

The USDA released a report in early August that forecast record corn yields this fall – production surpassing 16 billion bushels with a record-high yield of 188.8 bushels per acre. The announcement created buzz in the markets, which only further aided dairy producers’ income over feed cost (IOFC) outlook for the remainder of the year.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Aug. 29, which includes feed costs and milk prices used to calculate the July Dairy Margin Coverage (DMC) program margins and indemnity payments.

Nineteen states including California, Texas and Kansas boosted milk production a combined 598 million pounds in July.

In the news affecting dairy producers' bottom lines the third week of August 2025: The September Class I base milk price falls 23 cents, U.S.-EU trade agreement makes progress for dairy, GDT index down slightly, family-owned farms account for 95% of U.S. farms, and the USDA blocks taxpayer dollars for solar panels on prime farmland.

In dairy-related news this week: FSA office reminds dairy producers that DMC premium payments are due Sept. 1, nutrient management solutions are featured on Wisconsin farm tours Aug. 19-21, FARM Program seeks nominations for Farmer Advisory Council, and a new dairy trade show is set to launch in Vermont in November.

The milk production forecasts for 2025 and 2026 are raised from last month. The cow inventories are raised for both years based on the most recent data in the NASS Milk Production report.