The USDA expects margins for dairy farmers to remain tight into next year. While feed costs were lowered in the July outlook, it’s not enough to offset depressed milk prices. USDA expects the all milk price to average $16.10 for 2018 and $16.75 for 2019.
“Margins are still going to remain under some pressure most of the way through ’18, through most of ’19.” comments, USDA’s World Ag Outlook Board Chair Seth Meyer. He says too much cheese and butter, competitive export prices, and increasing milk production continues to pressure prices.