The dairy landscape is seeing rapid, much-welcomed improvements as milk markets rallied in May with Class III futures surpassing $20 per hundredweight (cwt), $4 above April’s prices. Coupled with feed costs receding, dairy margins are looking better for the remainder of the year.

Here’s an update on interest rates from quarter four of 2023 and quarter one of 2024 as reported by four Federal Reserve districts that share data impacting dairy finances.

Dairy producers in non-major dairy states will notice a change to how their Dairy-Revenue Protection (Dairy-RP) insurance coverage is determined.

In recently released news, the USDA offers funding for producers affected by influenza A (H5N1), dairies that dissolved in early 2024 are eligible for Dairy Margin Coverage enrollment, farmer sentiment declines, and announcements from dairy processors and cooperatives.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report April 30, which includes feed costs used to calculate March Dairy Margin Coverage (DMC) program margins and indemnity payments. Consistent feedstuff prices and a slight improvement in the all-milk price brought the average milk income margin to $9.65 per hundredweight (cwt).

Last week, the USDA released its final rule updating meal standards for the National School Lunch Program (NSLP) and the School Breakfast Program (SBP). The updated rule encompasses three key victories for dairy and child nutrition, and has drawn applause from industry stakeholders.

As predicted, milk prices recovered some in April with Class III at $15.57 per hundredweight (cwt) during the last full week of the month and futures jumping more than $1 for May and June. Unpredictability is still expected in the marketplace, and producers are encouraged to enroll in the Dairy Margin Coverage (DMC) safety net program.