According to forecasts made last month by Dairy Management Inc. and the National Milk Producers Federation, the final price of milk will be at least $25.50 per cwt. The previous high was $24.00 per cwt, set in 2014, so this is a significant increase.
They say that from August to October, commercial usage of milk and other dairy products in the United States continued to rise, allowing prices to strengthen despite an increase in output.
Since February of last year, monthly total U.S. dairy exports have topped the equivalent of 18% of U.S. milk solids. It is also noted that the $9.50/cwt threshold at which Dairy Margin Coverage (DMC) payments are triggered might fall again and might not recover until well beyond 2023.
For improved dairy policy, the American Farm Bureau Federation has proposed a number of changes. A Farm Bureau dairy working committee was formed to devise a strategy. Farmers from all four Farm Bureau areas are represented here.
The purpose of this study is to investigate potential ways in which the Farm Bill may be used to fortify the dairy industry this year and to update the Federal Milk Market Order, which has not been revised since 2000. It is imperative to increase Class I differentials and bring back the Class I Mover to a Higher-of formula as part of any order reform. The organisation also wants to streamline the milk testing process. They also want a modification in the dietary rules to allow whole milk and full fat dairy products, and they want to see a rise in catastrophic margin levels within DMC.
