Federal Milk Marketing Order (FMMO) uniform milk prices rose 40 cents in February from January’s $17 per hundredweight (cwt) to start the new year. The price improvement is due in part to the USDA’s announcement to purchase dairy products for food banks and nutrition assistance programs across the country.

After a disappointing start to the new year, the milk markets are starting to look better for February based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

The USDA National Agricultural Statistics Service (NASS) Ag Prices report, released Feb. 27, established January’s Dairy Margin Coverage (DMC) program calculations. Factors contributing to the margin include a milk price $1.50 below December 2025’s price and feed costs 11 cents higher than that of the month prior.

Futures prices are rising with news of competitive international prices and strong U.S. dairy exports coupled with the government’s announcement of dairy product purchases, all making for a bullish outlook for U.S. dairy producers in March.

Things could not have ended better for dairy product exports than they did in 2025.

Federal Milk Marketing Order (FMMO) uniform milk prices dwindled more than $1 from December 2025 in most orders, the result of robust production and waning consumer demand.

Continuing from the first half of last year’s trend, interest rates in the third quarter of 2025 fell according to lender surveys from Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts.