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“U.S. feed supply should be more than adequate in 2025, if weather cooperates. Given the expected lower feed prices, dairy farm margins should continue to improve in 2025,” wrote Bree Baatz, Terrain grain and oilseed analyst, in an article published in the March 6, 2025, issue of Hoard’s Dairyman Intel. She continued, “Milk supply is beginning 2025 in a position of slow growth, continuing the pattern of the past couple of years and setting the stage for modest milk price strength. There is potential for volatility in milk prices, particularly with any disruptions to exports, but low feed costs will leave some breathing room in milk-feed margins.” “With expectations for the all-milk price to average above $22 per hundredweight for 2025, and feed costs holding, dairy farm profitability looks to improve upon the average income-over-feed-cost margin in 2024.” Read the rest of the article on the Hoard’s website.
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