Milk prices are moving in favorable directions, with May Class IV futures closing at $22.29 per hundredweight (cwt) on April 24 and May Class III futures closing at $17.56 per cwt. But markets can quickly change. Add in the record prices dairy producers are receiving for cull cows and beef-on-dairy animals, and an established risk management plan becomes even more critical.

Interest rates in the fourth quarter of 2025 dipped to rates not seen since 2022 – lower than the peaks of 2023 but remained above the 10-year average – a signal lending conditions were more favorable for farmers despite overall credit conditions deteriorating as the year came to a close.

Federal Milk Marketing Order (FMMO) uniform milk prices climbed $1.14 per hundredweight (cwt) in March for an average price of $18.55 per cwt across all 11 orders.

February cemented the speed at which U.S. dairy exports are moving in today’s global marketplace.

Dairy markets continue moving in the right direction as milk class prices improve substantially month over month as recorded in the latest Federal Milk Marketing Order (FMMO) milk class price report.

Despite dairy margins strengthening – particularly in Class III and Class IV – which offered an increase in the all-milk price and offset sturdy feed costs, it was not enough for February’s margin to sit above the maximum payment threshold of the DMC program.

As we look to the second quarter of 2026, dairy markets have improved and margins are historically strong with forecasts playing in producers’ favors, particularly with incremental improvements in Class III and Class IV.

In the news affecting a dairy farmer's bottom line the third week of March 2026: April Class I base price gets a boost to $18.66 per cwt, the dairy checkoff launches an online database to help farmers find grant opportunities, fluid milk sales start the year lower, and applications are now open for Holstein Foundation memorial scholarships.

The momentum of U.S. dairy exports in 2025 carried on as the calendar turned to 2026. January proved international interest in U.S. dairy products remains as year-over-year growth reached 12% in milk solids equivalent volume, with cheese and butterfat continuing to lead the way.