From this week's USDA World Ag Supply and Demand Estimates (WASDE) and Crop Production reports to Rabobank's quarterly Global Dairy update, Progressive Dairy summarizes factors potentially impacting dairy producer income.

Private-lender interest rates on agricultural loans are moving higher and so are rates on loans through the USDA’s Farm Service Agency.

The milk income over feed cost margin should have finally reached bottom in July.

Milk checks for August production will reflect stronger protein and Class III milk prices and the highest Class IV milk price since January. A narrower price spread between Class III-IV milk prices could start to bring more Class IV milk to FMMO pools.

High summer culling rates are helping kick off better milk prices this fall.

Here’s Progressive Dairy’s monthly review of the numbers to provide some additional transparency to your milk check.

Despite a better outlook for milk prices, corn and soybean meal price projections were also raised.

Like the previous month, milk checks for July production will reflect weak protein and Class III milk prices. The wide price spread between Class III-IV milk prices means Class IV depooling will remain heavy.

Milk producers in just 13 counties marketed 25% of the total Federal Milk Marketing Order (FMMO) milk marketings in December 2022.