As the courts decide the fate of President Trump’s tariffs, another measure could offer dairy farmers some relief. Changes to the Federal Milk Marketing Order took effect over the weekend.
The Farm Bureau says the updates were long overdue and could provide some much-needed certainty.
“This was a need of the industry to say that the Federal Milk Market Order system has been outdated. These formulas needed to be updated in order to reflect more accurate market conditions. With all these trade disruptions, supply disruptions going on as well, the total impact might be stunted or sort of covered by some of these bigger market movers,” said Danny Munch.
Changes that are now in effect include the switch to the Higher-of Class 3 and 4 price formula. Class 1 differentials have also been raised, which Munch says will help offset transportation and service costs.
Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
January 30, 2026 03:42 PM
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The federal government’s status is far from the only factor moving the markets on Friday. Two critical reports released today on producer inflation and the status of the U.S. cattle herd are also top of mind.
January 30, 2026 12:51 PM
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Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
January 30, 2026 11:44 AM
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AFBF Economist Danny Munch shares a closer look at the dairy market and the forces impacting producers today.
January 29, 2026 02:52 PM
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Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
January 29, 2026 12:44 PM
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Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.
January 29, 2026 08:00 AM
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FarmHER Chris Nellis and her daughters navigate loss while carrying on a 300-year farm legacy, milking cows in upstate New York.
January 28, 2026 03:27 PM
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Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
January 28, 2026 06:00 AM
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Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.
January 26, 2026 03:00 PM
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