Home > News > Predicting 2022 Milk Prices Remains an Uncertain Guessing Game

Feeding time at a dairy farmAlready-present market volatility in the dairy industry, combined with external uncertainty around the U.S. supply chain mean next year’s milk price remain tough to predict. The September USDA Milk Production Report showed a continuing decline in cow numbers – a positive for milk prices. Meanwhile, the USDA monthly outlook predicted a slight reduction in next year’s feed prices. But, when considering feed prices are currently 30% higher than last year, a slight reduction isn’t considered a large win for dairy producers. From January 2017 to July 2021, the U.S. All-Milk price has averaged 12 cents below the $18 per hundredweight. Even amidst a more profitable dairy market, margins remain tight as input costs also rise. Read more on milk price forecasting here.

If dairy market volatility is placing strain on the profitability of your operation, consider adding Dairy Revenue Protection (DRP) coverage. DRP can give you peace of mind by protecting your operation against unexpected declines in quarterly revenue from milk sales.

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