Editor's note: Market commentary from Mark Stephenson, director of dairy policy analysis at the University of Wisconsin – Madison, and Bob Cropp, dairy economics professor emeritus, has been added. May 2018 U.S. milk production posted another small year-over-year increase, but cow numbers reversed course, moving higher again, according to the USDA’s monthly Milk Production report, released June 19. At 19.1 billion pounds, May U.S. milk production was up just 0.8 percent from a year earlier. USDA also revised April 2018 production downward slightly. The April revision represented a decrease of 18 million pounds, or 0.1 percent from last month's preliminary production estimate.

Digest Highlights • April fluid milk sales stable • National Fluid Milk Processor Promotion Board appointees named • Video: 650 million reasons for U.S. dairy's long-term investment in Southeast Asia • China retaliation to hit dairy • Zoetis, Holstein Association USA partner to publish Dairy Wellness Profit Index high-ranking female lists • New blood test reveals mastitis susceptibility

The U.S. Senate Agriculture Committee approved its 2018 Farm Bill proposal, so far a less contentious version than the House proposal defeated on the House floor in May. For the most part, dairy provisions of the Senate version of the 2018 Farm Bill are similar to those contained in the House version, but there are differences. Those include the premium structure and the flexibility (or lack of flexibility) to make changes in annual coverage selections under a revised and renamed Margin Protection Program for Dairy (MPP-Dairy).

Digest Highlights: U.S. ag secretary grants another extension for MPP-Dairy enrollment, and he’s headed to Canada to discuss ag issues Mexico’s tariffs could have bigger impact this time Dairy replacement exports feel the heat Wisconsin producers eligible for USDA loans to cover snowstorm losses

The USDA’s June World Ag Supply and Demand Estimates (WASDE) report reduced 2018 and 2019 milk production projections and brightened the outlook for prices somewhat. Nonetheless, average prices for both years are expected to be below averages received by dairy farmers in 2017.

With the approval of the California Federal Milk Marketing Order (FMMO) confirmed, USDA’s Agricultural Marketing Service (AMS) is targeting an October 2018 implementation date. Meanwhile, opposition to a proposal to convert Appalachian and Southeast FMMOs to multiple component pricing (MCP) systems has surfaced.

Another month, another record month for U.S. dairy export volumes. And, another cloud forming over dairy in the ongoing trade war of words and tariffs.

U.S. average alfalfa hay prices pushed to their highest levels in three years. Interest rates and fuel costs are on the rise, too. Harvest in some major hay areas was just getting underway due to weather-related delays. Here’s a look at the hay market with summer just around the corner.

For dairy farmers, sustainability is a package of three components, combining environmental stewardship and social benefits with profitable economics. At Reinford Farms, a depackager is helping optimize all three.

Digest Highlights: The National Milk Producers Federation board voted to extend the CWT export assistance program for three years. Wisconsin leaders are forming a dairy task force to identify and address industry challenges. Find these and other news summaries affecting dairy farmers here.