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Dairy economist Bill Brooks expects 2022 to be a more profitable year for dairy farmers, contingent on weather and feed input prices. USDA changed the Dairy Margin Coverage program's feed cost calculation to 100 percent premium alfalfa hay and made retroactive changes.
International butter prices above $3 per pound are helping firm US prices.
Stronger dairy prices improve producer margins and buying power, while feed cost swings tied to weather remain the key risk to profitability.
farmers-exchange.netJan 7, 2022After 17 past bullish policy events, Milk (Class III) moved a median -0.6% over 5 sessions (29% higher; middle half -1.6% to +0.2%), and -3.0% over 20.
After 439 past neutral policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +1.2%), and +1.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
