Revenue for dairy producers should climb in June as the trivial markets during the spring are forecast to improve with the income over feed cost margin predicted to settle at $12.60 per hundredweight (cwt). Additionally, the USDA announced upcoming changes to the Dairy Revenue Protection (Dairy-RP), Livestock Gross Margin (LGM) and Livestock Risk Protection (LRP) insurance programs that will affect dairy producers.

Here is the news affecting a dairy farmer's bottom line this third week of May 2025.

First-quarter dairy product exports ended on a positive note, with volume growing 3% in March. As the first three months of 2025 trailed just 0.5% behind 2024 volume, the value over the same period grew 14%, marking a first-quarter record at $2.3 billion. Here’s Progressive Dairy’s 30,000-foot look at dairy-related export categories.

Dairy producers should anticipate another month of lower milk prices based on a preview of Federal Milk Marketing Order (FMMO) milk class prices. Announced April 30, April 2025 FMMO Class II, Class III and Class IV milk prices were lower than March’s prices.

March’s margin was $11.55 per hundredweight (cwt), the result of a relatively stable feed cost but sinking all-milk price as then-talks of a looming trade war pressured the export market while domestic consumer spending cooled at the same time.

The milk market is taking shape with components reaching record highs and milk production climbing with the spring flush, but also with trade wars shaking the grain markets and concerns for domestic dairy demand letting up. Current forecasts predict 2025 dairy margins to be favorable although not as strong as previously anticipated.

In news affecting dairy producers' bottom lines the last full week of April 2025: May Class I drops to $18.37 per cwt, a final rule reauthorizes the Dairy Forward Pricing Program, IDFA to eliminate artificial colors in school dairy products, and Chobani invests $1.2 billion in New York processing plant.