Higher milk and beef prices are two bright spots that have contributed to healthier financial margins across much of the Pacific Northwest.

Despite political uncertainty, dairy producers across the Midwest are feeling positive and optimistic as we begin 2025, largely due to higher milk prices, improved profitability and a strong beef market.

Looking to the future, many dairy producers across the Northeast – especially in New York and Pennsylvania – are capitalizing on positive margins. “A lot of producers in our area of New York are positioning for growth, whether that be herd size, expansion or diversification,” says Tyler Reynolds of Reyncrest Farm, Corfu, New York.

Talk of growth, expansion and new opportunities have historically been quieter in the Southeast than in other regions, but Travis Senn, assistant director of milk marketing and analytics at Southeast Milk Inc. (SMI), says dairy farmers in this region are entering 2025 with a “level of confidence they haven’t had in years.”

On-farm financial margins have improved over the last year, and many organic dairy producers are feeling positive and optimistic thanks to lower inflationary pressure, higher mailbox prices and rising consumer demand.

Looking ahead, significant questions persist in both the dairy and political landscape for the coming months, with uncertainty and volatility never taking a rest. From tariffs to demand, and labor availability to avian influenza, a variety of topics are likely to command attention throughout this year.

Long-term interest rates, as measured by the 10-year U.S. Treasury, have a strong correlation with the federal funds rate. As a result, long-term interest rates are likely to remain higher until economic risks to the outlook clear and/or the Fed resumes interest rate cuts in the second half of the year.