The 2024 year ended with Class III prices showing more traction in December than in previous months as cheese and whey protein prices improved, and Class IV prices remained elevated to reflect strong market conditions.

The latest Zisk report projects profitability on dairy farms for 2025. It shows that U.S. dairy producers are expecting a profitable next 12 months, but as with previous reports, the picture isn’t equally as rosy for all producers.

In the news as we approach the middle of December, a federal committee upholds dairy dietary guidelines, dairy farmers are invited to apply for financial incentives to implement climate-smart practices, farm income falls $41 billion in two years, and the first HPAI-positive dairy case is found in Nevada.

The USDA’s World Ag Supply and Demand Estimates (WASDE) report offers forecasts for dairy, beef and feedstuffs. 

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

The reasons dairy farm families continue to invest and grow are rooted in the nature of dairy farmers and fundamental economic drivers. It is important to understand the drivers for investment decisions – both for planning on your own farm and for the industry overall.

As we look to the last month of the year, milk prices are trending lower than the previous months’ highs with milk production up year over year, new cheese plants online and holiday buying finishing up noted as a few influencing factors. Yet margins continue to look favorable.