USDA’s March WASDE raised 2025 milk production to 231.7 billion pounds and forecasts 234.7 billion pounds for 2026. Dairy prices strengthen, beef prices rise and most feed prices remain steady.

After a disappointing start to the new year, the milk markets are starting to look better for February based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

In the news affecting a dairy farmer's bottom line the first week of March 2026: GDT index moves higher in fifth consecutive event, AFBF economist examines the Dairy Margin Coverage program, and DMI CEO Barbara O’Brien announces her retirement.

By now, the dust has settled on the Federal Milk Marketing Order (FMMO) changes and it is possible to look back on their direct impacts.

The USDA National Agricultural Statistics Service (NASS) Ag Prices report, released Feb. 27, established January’s Dairy Margin Coverage (DMC) program calculations. Factors contributing to the margin include a milk price $1.50 below December 2025’s price and feed costs 11 cents higher than that of the month prior.

Futures prices are rising with news of competitive international prices and strong U.S. dairy exports coupled with the government’s announcement of dairy product purchases, all making for a bullish outlook for U.S. dairy producers in March.

Things could not have ended better for dairy product exports than they did in 2025.

Based on latest USDA monthly Livestock Slaughter data, the number of dairy cull cows marketed through U.S. slaughter plants in January 2026 was estimated at 246,800.

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