DAIRY MARKET PRICES

Report for March

Driven by a $2.00/cwt. drop in the U.S. all-milk price, the monthly margin under the Margin Protection Program (MPP) fell by $2.27/cwt. over the two months from November to January, to just over $8.00/cwt. The Bipartisan Budget Act of 2018, enacted earlier this year, made significant changes to the MPP and created additional risk management options for farmers. Milk production growth had been dwindling relatively steadily during 2017, but showed signs of increasing again in January. Domestic consumption of all dairy products was down slightly year-overyear during November–January, but exports were up from a year earlier by a full percentage point of domestic milk solids production during the same period.