Milk Marketing

3 Open Minutes with Leonard Polzin

jenn@agproud.com — Tue, 21 Jul 2026 00:00:00 -0400

Agriculture policy is set at a point in time while market conditions keep changing, and over time the two can drift apart. Progressive Dairy Editor Jenn Coyne spoke with University of Wisconsin agricultural economist Leonard Polzin to discuss the relevancy of the Dairy Margin Coverage (DMC) program in today’s evolving U.S. dairy market.

Uniform milk price climbs in most orders, falls in those utilizing Class III

jenn@agproud.com — Thu, 16 Jul 2026 15:23:44 -0400

For the sixth consecutive month, the average Federal Milk Marketing Order (FMMO) uniform milk price climbed from the month prior. The year began with an average uniform milk price of $17 per hundredweight (cwt) and reached $21.59 per cwt in June, according to the latest FMMO reports.

USDA milk production forecasts edge slightly higher

audrey@agproud.com — Fri, 10 Jul 2026 13:47:59 -0400

USDA’s July WASDE raised 2026 milk production slightly to 236.6 billion pounds on expectations of a larger cow herd and a decrease in milk output per cow.

Milk class prices shrink in June report

jenn@agproud.com — Wed, 01 Jul 2026 16:11:13 -0400

While the market for Class IV milk is still strong, the markets are signaling a retreat is near. The June USDA Announcement of Class and Component Prices report indicated the Class IV milk price falling more than $2 from the month prior, and while the Class III price also fell, the gap between the two is closing as the markets search for balance.

May DMC margin is realized at $10.62 per cwt

jenn@agproud.com — Mon, 29 Jun 2026 16:00:37 -0400

The USDA National Agricultural Statistics Service (NASS) Agricultural Prices report, released June 29, established May’s Dairy Margin Coverage (DMC) program calculations. As the all-milk price rose 50 cents, the total feed costs rose 42 cents, boosting the DMC margin 8 cents to $10.62 per hundredweight (cwt) for the month.

Dairy risk management calendar: July 2026

jenn@agproud.com — Mon, 29 Jun 2026 15:10:45 -0400

Milk production across the U.S. has been rampant in 2026 with both processing capacity and global demand pressuring dairy farms to produce more, and a larger national dairy herd is helping keep the pace. Despite all the dynamics working in favor for U.S. dairy farmers, milk margins remain tight and risk management strategies remain critical.

U.S. dairy herd growth drives higher milk production in May

audrey@agproud.com — Mon, 22 Jun 2026 17:16:38 -0400

Nineteen states including Kansas, Wisconsin and Texas boosted milk production a combined 494 million pounds in May.

Economic Update: Class I base milk price dips after up-and-up run

karen@agproud.com — Thu, 18 Jun 2026 15:30:39 -0400

In the news affecting a dairy producer's bottom line the third week of June 2026: Class I base milk price dips after up-and-up run, fluid milk sales shift higher again, CoBank reports on dairy heifer inventories, and DFA announces idling of plant and closure of store in Vermont.

Milk markets push PPDs, uniform prices to continue climbing in May

jenn@agproud.com — Mon, 15 Jun 2026 16:06:58 -0400

The average Federal Milk Marketing Order (FMMO) uniform milk price climbed 85 cents in May for an average price of $20.87 per hundredweight (cwt) across all 11 orders. Both May’s uniform milk price and producer price differentials (PPDs) edged upward, a reflection of the current market dynamics facing dairy producers, but at a much slower pace than what was realized in March and April.

Weekly Digest: Dairy farmers sue USDA over checkoff program

karen@agproud.com — Mon, 15 Jun 2026 13:57:35 -0400

In dairy-related news the third week of June 2026: Dairy farmers sue the USDA over checkoff program, Congressional Fly-in urges action on labor and other issues, Rabobank reports the global dairy market is heading toward a supply slowdown, and Idaho Milk Products expands its footprint.

USDA feed supply, price forecasts remain stagnant

audrey@agproud.com — Thu, 11 Jun 2026 15:40:25 -0400

USDA’s June WASDE raised 2026 milk production to 236.4 billion pounds on expectations of a larger cow herd and an increase in milk output per cow.

Class III-IV gap widens to largest spread since 2020

jenn@agproud.com — Wed, 03 Jun 2026 16:08:46 -0400

The May USDA Announcement of Class and Component Prices report is indicative of a milk market the U.S. dairy industry has not seen since 2020 as the gap between Class III and Class IV reached $5.40 per hundredweight (cwt), incentivizing depooling in Federal Milk Marketing Orders (FMMOs).

April DMC margin reaches yearly high of $10.54 per cwt

jenn@agproud.com — Fri, 29 May 2026 17:10:21 -0400

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.

Dairy risk management calendar: June 2026

jenn@agproud.com — Thu, 21 May 2026 13:25:28 -0400

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.

Economic Update: June Class I base price reaches $22.18 per cwt

karen@agproud.com — Thu, 21 May 2026 13:13:23 -0400

In the news impacting a dairy producer's bottom line the third week of May 2026: June Class I base price reaches $22.18 per cwt, fluid milk sales for March are 2.3% higher than a year earlier, the FARM Environmental Stewardship Program integrates newly updated RuFaS Model, and entries are now open for the 2026 World Forage Analysis Superbowl.

April uniform milk prices, PPDs rise

jenn@agproud.com — Thu, 14 May 2026 16:29:11 -0400

The Federal Milk Marketing Order (FMMO) uniform milk prices rose an average of $1.48 per hundredweight (cwt) from March to April for an average price of $20.03 per cwt across the 11 orders.

USDA adds 3.7 billion pounds to 2026 milk outlook

audrey@agproud.com — Tue, 12 May 2026 14:09:39 -0400

USDA’s May WASDE report raised 2026 milk production to 235.4 billion pounds on expectations of a larger cow herd but a slower growth rate in output per cow.

The road ahead: FMMO reform and dairy pricing

vmason@centerfordairyexcellence.org — Wed, 06 May 2026 00:00:00 -0400

At the 2026 Pennsylvania Dairy Summit, Sara Dorland, managing partner at Ceres Dairy Risk Management, shared her insights on the global dairy landscape, dairy markets, the recent Federal Milk Marketing Order (FMMO) price reform and what all of this could mean for dairy producers.

March DMC skates above payment threshold at $9.57 per cwt

jenn@agproud.com — Thu, 30 Apr 2026 16:25:25 -0400

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.

Milk prices rise for fourth consecutive month

jenn@agproud.com — Thu, 30 Apr 2026 07:54:10 -0400

The USDA’s Announcement of Class and Component Prices report for April confirmed the good news buzzing throughout the dairy industry, with prices rising in Class II, III and IV for the fourth straight month in 2026.

Dairy risk management calendar: May 2026

jenn@agproud.com — Mon, 27 Apr 2026 15:36:20 -0400

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.

U.S. milk production climbs 2.3% in March as dairy herd grows

audrey@agproud.com — Fri, 24 Apr 2026 10:55:11 -0400

Twenty states including Kansas, Texas and Wisconsin boosted milk production a combined 535 million pounds in March.

Economic Update: May Class I base milk price climbs past $20 per cwt

karen@agproud.com — Thu, 23 Apr 2026 08:12:08 -0400

In the news affecting a dairy producer's bottom line the third week of April 2026: May Class I base milk price climbs past $20 per cwt, fluid milk sales remain lower than last year, GDT index is down again, Alltech survey estimates world feed production increased in 2025, protein innovation, margin discipline emerge as top priorities for dairy executives, and applications open for Dairy’s Foundation grants.

Uniform milk prices are firm heading into spring flush

jenn@agproud.com — Thu, 16 Apr 2026 08:35:11 -0400

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.

Weekly Digest: NMC announces agenda for June regional meeting in Wisconsin

karen@agproud.com — Mon, 13 Apr 2026 16:16:13 -0400

In dairy-related news the second week of April 2026: NMC announces agenda for June regional meeting in Wisconsin, the GDT index drops 3.4%, farmer sentiment improves despite rising input costs, and Hiland Dairy hosts a grand opening at its Texas production facility.

USDA increases 2026 milk production estimates, Class III and all-milk prices projected higher

audrey@agproud.com — Thu, 09 Apr 2026 14:56:20 -0400

The USDA’s April WASDE raised 2026 milk production to 235.3 billion pounds as increases to the dairy cow inventory more than offset slower growth in milk output per cow.

Milk prices rising is not an April Fools’ joke

jenn@agproud.com — Wed, 01 Apr 2026 16:31:42 -0400

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.

Weekly Digest: ADC seeks transparency in USDA cost survey

karen@agproud.com — Mon, 30 Mar 2026 16:29:44 -0400

In dairy-related news to finish out March 2026: ADC seeks transparency in USDA cost survey, NMPF: Dairy product prices see noticeable improvement, Holstein Association USA board approves updates to TPI formula, and a collaboration creates bilingual videos on cattle sustainability.

Payments triggered for February DMC margin of $8.46 per cwt

jenn@agproud.com — Mon, 30 Mar 2026 16:01:33 -0400

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.

Dairy risk management calendar: April 2026

jenn@agproud.com — Thu, 26 Mar 2026 09:54:04 -0400

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.