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Pro Ag Management, Inc.* (collectively with its corporate affiliates, “ProAg®”) is a managing general agency representing several risk bearing insurance companies, including Producers Agriculture Insurance Company and U.S. Specialty Insurance Company. Insurance policies are obligations of the issuing insurance company, are not obligations or deposits of or guaranteed by any bank and are not insured by the Federal Deposit Insurance Corporation. ProAg is a subsidiary of Producers Ag Insurance Group®, Inc. and a member of the Tokio Marine HCC group of companies.
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Strong global demand, the potential for a new USDA “Food Box” program and a slightly contracting dairy cow herd are all signs that the dairy markets could start to see new life moving into spring. The increase in cow numbers is slowing, and that’s translating to just slight increases in overall milk production, which is fundamentally bullish if that herd trend continues. State by state, production has fluctuated, with declines in states in the eastern and western U.S. while output in the Midwest has risen in the first few weeks of 2021. While it adds up to the likelihood of slightly higher dairy prices at the farm gate in the coming months, one analyst says feed will be a wildcard; feed prices are surging and availability of high-quality dairy-grade feed grains may become an issue moving into the summer. See more from this slightly bullish dairy outlook.