Here’s an update on risk management tools available through the USDA and/or USDA’s Risk Management Agency (RMA), as well as other information impacting your milk check.

The March 2023 USDA data summarizes milk production prior to the fire the killed an estimated 18,000 cows at South Fork Dairy in Dimmitt, Texas, on April 10.

With a USDA decision deadline still about more week away, numerous dairy cooperatives have joined in voicing opposition to a dairy processor request for a Federal Milk Marketing Order (FMMO) hearing.

Class IV milk represented about 17% of the total milk pooled in all FMMOs in March, the highest volume and percentage since last May.

Compared to last month, the USDA raised the U.S. milk production estimate for 2023 slightly, but also raised Class III and all-milk price forecasts.

While still historically low, February 2023 exports of most U.S. hay products rebounded slightly from January.

Factoring into dairy feed costs, 2023 dry hay acreage is expected to rebound slightly from last year’s 115-year low.

Following previous action in the House, the Senate passed a Waters of the U.S. (WOTUS) resolution of disapproval.

The National Milk Producers Federation is expected to submit its own FMMO hearing request to the USDA later in April.

The February 2023 indemnity payments continue what looks to be a lengthy trend, with monthly margins projected to be below $9 for all months until October.