# Dairy and the cost of production in tough times | UMN Extension

> Minnesota lost about 10% of its dairy farms in 2018 and Wisconsin is down to about 8,000 farms. FINBIN data show overall cost of production averaged $17.22 per cwt of milk in 2017, with small herds facing much higher costs than large herds.

- Date: 2019-01-16 · published 2019-01-16T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/61113-dairy-and-the-cost-of-production-in-tough-times-umn-extension
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Farm exits and high production costs relative to milk prices reduce future milk supply over time, which is bullish for dairy prices. Shrinking herds also lower demand for purchased feed.

## Read by commodity

- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2026-07-21 | [Protein inflation surges as costlier fodder pushes up milk, chicken prices - The Economic Times](https://feedsoft.ai/events/18511-protein-inflation-surges-as-costlier-fodder-pushes-up-milk-chicken-prices-the.md) | +0.1% | +5.4% |
| MILK | 2022-03-11 | [2022 economic state of the U.S. dairy industry - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/42283-2022-economic-state-of-the-u-s-dairy-industry-progressive-dairy-ag-proud.md) | -0.1% | +7.6% |
| MILK | 2021-11-19 | [US Dairy Prices Jump As Milk Production Growth Slows - EDairy News English](https://feedsoft.ai/events/44199-us-dairy-prices-jump-as-milk-production-growth-slows-edairy-news-english.md) | +0.6% | +3.1% |
| MILK | 2026-04-21 | [What’s Driving a Better Dairy Outlook in the Second Half of 2026 - Dairy Herd](https://feedsoft.ai/events/19873-what-s-driving-a-better-dairy-outlook-in-the-second-half-of-2026-dairy-herd.md) | -0.0% | +0.6% |
| MILK | 2017-01-23 | [Economist expects dairy prices to improve - Brownfield Ag News](https://feedsoft.ai/events/73111-economist-expects-dairy-prices-to-improve-brownfield-ag-news.md) | -0.1% | +0.7% |

## Sources

- extension.umn.edu: https://extension.umn.edu/agriculture/animals-and-livestock/dairy/dairy-news/dairy-and-the-cost-of-production-in-tough-times

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