The new year will not be starting out strong for most dairy producers as they can anticipate weaker milk checks in January, based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

As trade data continues to be released following the six-week government shutdown last fall, records indicate a favorable end to the 2025 year for U.S. dairy products.

Both feed costs and the milk price fell month over month for a DMC margin of $9.42 per hundredweight (cwt), triggering the first and only payment in 2025.

Anaerobic digesters have reshaped the dairy industry, providing a sustainable solution for manure handling and an alternative energy source for U.S. households. For the relatively small portion of those projects that receive funding through the USDA’s Rural Energy for America Program (REAP), that momentum now faces a temporary pause.

The influx of milk has pushed prices downward, and despite alternative revenue sources helping ease the pain on farms’ bottom lines, pressure is mounting on margins.

The past year provided ample opportunities for dairy producers to capitalize on market conditions with both longstanding and new risk management strategies.

USDA reports influencing dairy markets remain delayed following the conclusion of the government shutdown, and at the same time, seasonal pressures from the holiday season are shaping the U.S. dairy outlook for December. Producers should evaluate their current risk management options and secure additional coverage as 2025 comes to a close.