Friday, December 5, 2025
Tags Posts tagged with "milk prices"

Tag: milk prices

With low milk prices, it’s important, as the saying goes, to “squeeze every penny possible out of the milk check.”

There is no doubt the production agriculture sector is going through a tough financial period. In particular, low crop prices and low milk prices are severely impacting row crop and dairy producers.

Some people don’t realize this, but the U.S. government has little to do with milk prices anymore. The current system is mostly based on the simple market economics of supply and demand.

2015 came to a close pretty much the same way it started: disappointing milk prices and negative margins.

We are starting 2016 with Class III milk prices dipping into the $13 per hundredweight (cwt.) range for multiple months in the futures market.

The USDA might be the entity that calculates component prices, but you are the one who determines how much of each component your cows are producing.

As things stand for now, what we have in terms of price and dairy profitability should remain pretty much the same.

The 2015 forecast for milk price income on dairy farms is looking to be less than it was in 2014.

For all of 2015, Class III futures are currently averaging $16.51/cwt, which would put the average mailbox price in Federal Order 33 at about $18/cwt for the year.

Milk prices are good now, but get ready for a change.