It appears that the all-milk price took a big hit in March.

According to the USDA’s “Agricultural Prices” report on Tuesday, the preliminary all-milk price in March is $15.10 per hundredweight, down 80 cents from February.

And, with feed prices not appreciably cheaper, that means lower profitability, as measured by the USDA’s “milk-feed” ratio. The ratio dropped to 2.26 in March, compared to an adjusted ratio of 2.35 in February.

A ratio of 2.26 means that a dairy producer can buy 2.26 pounds of feed for every pound of milk sold. Whenever the ratio meets or exceeds 3.0, it is considered profitable to buy feed and produce milk.

The corn price used to calculate March’s ratio was $3.49 per bushel, down 6 cents from February. The price of baled alfalfa hay stayed the same at $111 per ton. Soybeans dropped 25 cents per bushel to $9.16.

Source: USDA "Agricultural Prices" report