Explore our in-depth analysis on the slight rise in revenue and expenditure for US dairy farmers in March. Curious about the factors behind this trend? Dive in now.
Sometimes the details really do matter, and that’s particularly true in the world of dairy farming. Here’s some insight that’s fresh off the farm: U.S. dairy farmers found themselves a little bit better off in March than they were in February. It’s mostly a good news scenario, with just a few hitches thrown in.
According to the USDA, the index of prices received by farmers was up 1.5%. This was mostly due to some gains across a range of products. Here’s a quick run-down: cattle, hogs, broilers, and lettuce all saw gains, which helped to offset losses in wheat, market eggs, oranges, and strawberries.
The dairy index for March 2024 was slightly improved too, ending up 0.5% higher than February. Sounds like a win, right? But before we get too excited, it’s worth noting that it was 1.4% lower than in March 2023. The all milk price was at $20.70 per hundredweight, which was an increase of $.10 on the month – but again, it was down $.30 on the year.
Switching gears to what farmers are paying out, the index of prices paid rose 0.6%. This increase was mainly due to higher costs for feeder cattle, feeder pigs, gasoline, and nitrogen. On the bright side, there were some decreases to the costs of hay and forages, complete feeds, LP gas, and concentrates. Every little bit helps, right?
Overall, it’s a bit of a mixed bag. Year to year, the index of prices received was down 4.8% while the index of prices paid was 1.1% lower. While some farmers continued to see their profits limited by relatively high input prices.
So, as you can see, being a dairy farmer is never simple or straightforward. But in this case, at least it seems that things are slightly on the upswing. Here’s hoping that continues for our hardworking farmers.
