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.

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.

In dairy-related news to end April 2026: Organic dairy producers file class action suit against the U.S. government, chocolate returns to the top as America’s favorite ice cream flavor, and dairy product prices continue to gain strength.

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.

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 first week of March 2026: GDT index moves higher in fifth consecutive event, AFBF economist examines the Dairy Margin Coverage program, and DMI CEO Barbara O’Brien announces her retirement.

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.