Widespread winter precipitation improved moisture conditions throughout the U.S., providing optimism for the 2017 growing season. Meanwhile, hay prices generally remained low and steady, but buyer interest was picking up in early February, suggesting the marketing year was beginning to thaw.

An effort to move California into the Federal Milk Marketing Order (FMMO) system took a major step forward with USDA’s “recommended decision,” published Feb. 14. Meanwhile, a separate petition from the state’s dairy processors, seeking to adjust manufacturing allowances under the state milk marketing order, was denied.

Along with the hope better hay and other commodity prices will improve income margins in 2017, forage producers will likely encounter something else they haven’t seen in a while – rising interest rates.

While uncertainty remains regarding Trump administration trade policies and a border battle with Canada appears to be escalating, a strong second-half finish improved the U.S. dairy exports picture and pushed 2016 dairy ingredient exports to a record level, according to Alan Levitt, with the U.S. Dairy Export Council (USDEC).

Citing a “significant and unprecedented imbalance” between milk supply and demand, Dairy Farmers of America (DFA) is requesting increased milk pooling flexibility in the Northeast federal milk marketing order (FMMO 1).

Some things don’t change. Yogurt starts with milk, and that requires dairy farmers, cows and feed. However, creating a non-GMO dairy supply chain requires changing some long-held business arrangements. One of those is the producer-processor relationship.

Meet Country Dairy, located near New Era, Michigan. While much of the attention on a non-GMO dairy supply chain has been on the East and West coasts and in small niche markets, Country Dairy is trying to create a larger presence in the Midwest.

Dairy profitability demands optimizing resources every day. For Sean Jones, that goes double. Sometimes triple. Jones is the third generation involved in Lester C. Jones and Sons Inc., a multi-family member dairy farm near Massey, Maryland.

Brighter milk prices and income margins mean U.S. dairy producers may be climbing out of the shadows of 2015-16. Based on USDA’s monthly reports, the U.S. average milk price and milk income over feed cost margin hit 24-month highs in December.

Michigan will get some much-needed milk processing capacity, although project completion is more than two years away.