# Rising production costs will keep dairy farm margins tight

> Rabobank expects rising farm-level production costs, driven by drought-induced higher feed costs and inflation, to keep dairy farm margins tight. It projects milk production growth in the Big-7 exporting regions to stay below 1.2%.

- Date: 2021-08-31 · published 2021-08-31T12:00:00.000Z
- Category: weather · region Global · magnitude low
- Page: https://feedsoft.ai/events/45574-rising-production-costs-will-keep-dairy-farm-margins-tight
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Drought-driven feed cost increases squeeze dairy margins and cap milk output growth, which supports demand for feed ingredients while limiting dairy herd expansion.

## Read by commodity

- CORN: bullish ▲
- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2025-01-04 | [Mild Winter Boosts US Milk Production Amid Market Fluctuations \| The Bullvine](https://feedsoft.ai/events/6083-mild-winter-boosts-us-milk-production-amid-market-fluctuations-the-bullvine.md) | -1.3% | -0.4% |
| MILK | 2017-03-20 | [Winter weather, lackluster cheese demand affecting dairy prices \| Dairy \| leadertelegram.com](https://feedsoft.ai/events/72008-winter-weather-lackluster-cheese-demand-affecting-dairy-prices-dairy.md) | +0.6% | -3.1% |
| MILK | 2017-11-24 | [Futures File: Milk market frothy; buyers want soybeans; U.S. dollar tumbles – Greeley Tribune](https://feedsoft.ai/events/9915-futures-file-milk-market-frothy-buyers-want-soybeans-u-s-dollar-tumbles-greeley.md) | -8.8% | -8.2% |
| MILK | 2022-07-06 | [Ag Alert](https://feedsoft.ai/events/8552-ag-alert.md) | +2.5% | +1.9% |
| CORN | 2022-04-27 | [Counting Cows: Drought, Costs Will Drive Further Reductions - Drovers](https://feedsoft.ai/events/41786-counting-cows-drought-costs-will-drive-further-reductions-drovers.md) | -6.4% | -1.7% |
| CORN | 2026-10-06 | [Margins Tighten for Producers Amid Feed and Fuel Cost Increases - NMPF](https://feedsoft.ai/events/17118-margins-tighten-for-producers-amid-feed-and-fuel-cost-increases-nmpf.md) | -1.8% | -5.6% |
| CORN | 2020-07-27 | [A Few Dry Pockets Being Watched in U.S. Crop Production \| Red River Farm Network](https://feedsoft.ai/events/51961-a-few-dry-pockets-being-watched-in-u-s-crop-production-red-river-farm-network.md) | -1.6% | +2.2% |
| CORN | 2022-11-03 | [Rising input costs may overwhelm cattle prices \| The Western Producer](https://feedsoft.ai/events/7224-rising-input-costs-may-overwhelm-cattle-prices-the-western-producer.md) | -0.6% | -3.9% |

## Sources

- dairyglobal.net: https://www.dairyglobal.net/industry-and-markets/market-trends/rising-production-costs-will-keep-dairy-farm-margins-tight/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.