With improving milk prices and margins and tightening cow numbers, average prices for U.S. replacement dairy cows moved to an eight-year high in October.

Struggling cheese and protein prices weakened the Class III price, offsetting strong butterfat and Class IV prices and widening the Class III-IV price spread, adding substantial Class IV depooling incentives.

The USDA National Agricultural Statistics Service (NASS) released its latest Ag Prices report on Oct. 31, including factors used to calculate September 2023 Dairy Margin Coverage (DMC) margins and indemnity payments.

Here is a brief look at the news affecting dairy producers as October 2023 comes to a close.

Farm lending activity at commercial banks has slowed as the Federal Reserve Board’s Federal Open Market Committee meets to consider adjusting interest rates again.

Without a 2023 Farm Bill or temporary extension of the 2018 Farm Bill, the Dairy Margin Coverage (DMC) program expires at the end of the calendar year.

USDA organic dairy programs, production data collection and risk management support would increase under a bill introduced in the Senate.

Contributing to the smaller milking herd, about 2.38 million head of dairy cull cows were marketed through U.S. slaughter plants during January-September 2023, up about 101,500 from the same period in 2022.

Here is a brief look at the news affecting dairy producers during the third week of October 2023.