May proved to be another enthusiastic month for U.S. dairy exports, with the year-over-year volume growth streak now reaching eight consecutive months as exports rose 14% in milk solids equivalent terms. All of this is despite low nonfat dry milk/skim milk powder (NDM/SMP) shipments – due to steep price comparison – reigning in what might have been a record month.

While the market for Class IV milk is still strong, the markets are signaling a retreat is near. The June USDA Announcement of Class and Component Prices report indicated the Class IV milk price falling more than $2 from the month prior, and while the Class III price also fell, the gap between the two is closing as the markets search for balance.

The development of the U.S. dairy industry over the course of 250 years is no doubt a gratifying one, as each step has led us to this progressive, innovative and abounding industry that we all know and cherish today.

The USDA National Agricultural Statistics Service (NASS) Agricultural Prices report, released June 29, established May’s Dairy Margin Coverage (DMC) program calculations. As the all-milk price rose 50 cents, the total feed costs rose 42 cents, boosting the DMC margin 8 cents to $10.62 per hundredweight (cwt) for the month.

Milk production across the U.S. has been rampant in 2026 with both processing capacity and global demand pressuring dairy farms to produce more, and a larger national dairy herd is helping keep the pace. Despite all the dynamics working in favor for U.S. dairy farmers, milk margins remain tight and risk management strategies remain critical.

As 2026 got underway, interest rates for American farmers continued to retreat to levels last noticed in 2022 as reported in the major agricultural regions including Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts.

In the news affecting a dairy producer's bottom line the third week of June 2026: Class I base milk price dips after up-and-up run, fluid milk sales shift higher again, CoBank reports on dairy heifer inventories, and DFA announces idling of plant and closure of store in Vermont.

The average Federal Milk Marketing Order (FMMO) uniform milk price climbed 85 cents in May for an average price of $20.87 per hundredweight (cwt) across all 11 orders. Both May’s uniform milk price and producer price differentials (PPDs) edged upward, a reflection of the current market dynamics facing dairy producers, but at a much slower pace than what was realized in March and April.