The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report, released May 12, revised the 2022 U.S. milk production estimate upward, with higher milk cow inventories more than offsetting slower growth in milk per cow.

A slow start to the 2022 growing season means delays in new-crop hay production and price discovery.

After reaching new levels of quality in 2020, U.S. milk producers saw one measure – somatic cell counts (SCC) – post a tiny setback in 2021, based on an annual summary of Dairy Herd Improvement (DHI) test-day results.

In this column, Progressive Dairy summarizes issues in the news and attempts to describe how they might affect dairy farmers. Look for more extensive background and details at Progressive Dairy. Editor's note: This article has been updated to include additional information from the USDA regarding "mailbox" prices.

March U.S. dairy product exports capped a strong first quarter of 2022, according to the U.S. Dairy Export Council (USDEC). Global sales were supported by higher values and – despite those higher prices – export volumes also held their ground.

Dairy producers using the USDA Risk Management Agency (RMA) Dairy Revenue Protection (Dairy-RP) program will have an additional income safety net covering milk production losses due to natural disasters starting with the 2023 crop insurance year.

Digest highlights

• April Class IV milk price tops $25
• Senate kicks off 2023 Farm Bill field hearings
• Calgren Dairy Fuels receives California Dairy Sustainability Award
• Planting progress continues to lag
• OMB reviewing FDA’s draft guidance on plant-based dairy alternative labeling
• White House plans ‘hunger, nutrition and health’ conference in September
• USDA proposes rule regarding the Livestock Dealer Statutory Trust

Update highlights

• 2022 DMC enrollment posts small decline
• ‘Replacement’ economics improves
• January all-milk, mailbox price spread averaged $1
• GDT price index tumbles
• Ag producer sentiment improves but input costs, availability remain top concern

Stronger milk prices and tighter supplies of cows and heifers pressured U.S. average prices for dairy replacements higher in April according to latest estimates from the USDA. Meanwhile, cull cow prices to end the first quarter of 2022 were the highest in more than six years.

Seemingly in a race to the top, record-high milk prices surpassed record-high feed costs in March to help buffer dairy producer milk income margins calculated under the Dairy Margin Coverage (DMC) program.