In the Economic Update, we look at the expiration of the 2018 Farm Bill, the latest GDT trade event results, FSA interest rates for October and a weakening farmer sentiment.

Dairy producers visiting World Dairy Expo are seeing some of the best cows in the U.S. Returning home, many could see some of the strongest milk checks in almost two years.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Sept. 27, which includes feed costs used to calculate the August Dairy Margin Coverage (DMC) program margins and indemnity payments. August’s margin was $13.72 per hundredweight (cwt).

The outlook for dairy producers continues to be strong for the remainder of the year, despite milk futures retreating some – albeit still high compared to less fruitful years – and an anticipated high-yielding 2024 harvest. October’s income-over-feed cost projections remain in dairy producers’ favor for a profitable month with the margin just shy of $16 as of Sept. 24.

In the Economic Update, the Class I base price hits two-year high in October, fluid milk sales continue upward trend, and the USDA launches an assistance network to support financially distressed farmers.

Seventeen states including Wisconsin, New Mexico, Minnesota and Arizona reduced production a combined 233 million pounds.

Dairy cull cows marketed through U.S. slaughter plants in August lowest since 2020.