The May USDA Announcement of Class and Component Prices report is indicative of a milk market the U.S. dairy industry has not seen since 2020 as the gap between Class III and Class IV reached $5.40 per hundredweight (cwt), incentivizing depooling in Federal Milk Marketing Orders (FMMOs).

The price for all key feedstuffs used to calculate the margin rose in April, revealing an income over feed cost of $10.54 per hundredweight (cwt), more than $1 above the highest coverage selection in Tier I and comfortably positioning those enrolled in the program in the clear of indemnity payments.

June marks the halfway mark for 2026, but it is already time to start thinking about risk management coverage for 2027 as the new crop year is on the horizon.

In the news impacting a dairy producer's bottom line the third week of May 2026: June Class I base price reaches $22.18 per cwt, fluid milk sales for March are 2.3% higher than a year earlier, the FARM Environmental Stewardship Program integrates newly updated RuFaS Model, and entries are now open for the 2026 World Forage Analysis Superbowl.

The Federal Milk Marketing Order (FMMO) uniform milk prices rose an average of $1.48 per hundredweight (cwt) from March to April for an average price of $20.03 per cwt across the 11 orders.

Hoof health is crucial to a dairy cow’s overall well-being – and in turn milk production and the farm’s bottom line. Different seasons put greater pressure on hoof health in a dairy herd than others and call for a pivot in management. Summer heat is one of those times.

Prices continue to support the ample flow of milk in the U.S. as the global marketplace wants more. In March, not only were U.S. dairy product exports up 8% from the same month a year ago, but it was the highest milk solid equivalent volume in four years.

Not long ago, I was reading an obituary of a dear family friend and mentor, Martin. He was successful by every definition of the word – from the dynamics of his family and the legacy he left behind, to the structure of his business and contributions to the dairy industry.

The USDA National Agricultural Statistics Service (NASS) Agricultural Prices report, released April 30, established March’s Dairy Margin Coverage (DMC) program calculations. Both milk prices and feed costs rallied enough in March for the DMC program margin to climb out of the depths of indemnity payments.

The USDA’s Announcement of Class and Component Prices report for April confirmed the good news buzzing throughout the dairy industry, with prices rising in Class II, III and IV for the fourth straight month in 2026.