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 USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Nov. 19, which includes feed costs used to calculate the October Dairy Margin Coverage (DMC) program margins and indemnity payments. The margin slipped to $15.17 per hundredweight (cwt).

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.

Dairy cull cows marketed through U.S. slaughter plants in October lowest since 2010.

Dairy producers and nutrition consultants alike understand the importance of a well-managed nutritional program during the transition period for the health and productivity of their herd.