The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report June 28, which includes feed costs used to calculate May Dairy Margin Coverage (DMC) program margins and indemnity payments. May’s income over feed cost was $10.52 per hundredweight (cwt), the largest margin since November 2022.

Just as financial indexes are used to gauge the overall health of an economy, many different metrics exist to express the relative impact of certain activities on the health of our climate. 

Margins appear encouraging with the recent swell in Class III prices and improved feed costs. Cheese exports to Mexico have also been critical for U.S. dairy producers as shipments to China and Southeast Asia have slowed. Yet, with extreme weather conditions and the continued spread of avian influenza, having a strategy to manage risk is essential.

Dairy cull cows marketed through U.S. slaughter plants lowest since May 2016.

Led by New Mexico, California, Georgia, Arizona and Kansas, 16 states reduced May 2024 milk production a combined 237 million pounds compared to the same month a year ago.

The Federal Milk Marketing Order (FMMO) advanced Class I base price continues to rise, and there’s a change in the Class I mover formula impact, albeit small.