U.S dairy farmers are boosting production this year and the trend is expected to continue next year.
USDA says milk output in April was up more than 3% from the same time last year. During that same time, producers are getting more milk per cow, with estimates pointing to 40 pounds more per cow.
Looking ahead to next year, USDA Outlook Board Chairman Mark Jekanowski says milk production will likely top this year by 1%
“That’s coming despite an expectation for a decline in cow numbers,” says Jekanowski. “That’s more than offset, or expected to be more than offset, by an increase in milk per cow so higher productivity”
Looking ahead at 2022, milk prices are expected to be lower, down about 2.3% percent from this year with an average all milk price of $18.50 per hundredweight.
When you factor in higher feed costs into that equation, it cuts into margins, which could trigger some payments through the Dairy Margin Protection Program.
