September All-Milk Price Gains Ground
USDA released its Ag Prices report this week, showing the September all-milk price at $17.30/cwt. That’s up 20¢/cwt from August but also trails year-ago prices by 20¢/cwt.
Most states in the Midwest and Northeast were reporting even higher prices, with Minnesota and Wisconsin coming in at $17.90 and New York and Pennsylvania at similar levels. California, however, continued to report the lowest all-milk price, at $15.75, of the 23 states reporting.
With lower feed prices, dairy margins are improving as well. USDA reported the September Margin Protection Program margin at $9.48, up more than $1 from the July/August average of $8.43. The September MPP margin was the largest since December 2014, when it was $10.66/cwt.
Despite the better milk prices overall, dairy cow replacement values were down about 15% from a year ago. USDA estimates average replacement values at just $1,690/head, down from $1,980 a year ago.