Yikes! This is about as bad as the depths of 2009

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

On Thursday, the U.S. Department of Agriculture released a milk-feed ratio that practically matched the worst ratios put up in the depression year of 2009.

According to the USDA’s “Agricultural Prices” report, the preliminary milk-feed ratio in March is 1.48 — nearly as bad as the revised ratio of 1.45 for June 2009, the lowest point that year.  

The milk-feed ratio is a rough approximation of dairy profitability using current feed costs and milk prices.

High feed costs have been primarily responsible for the dismal performance of the milk-feed ratio in recent months, but milk prices have started to drop, as well.  Compared to February’s report, the all-milk price has dropped from $17.70 to $17.40 per hundredweight.

February’s ratio has since been revised from 1.58 to 1.55.

Some people question how valid the USDA’s milk-feed ratio is. See this story. But the USDA has been using the same formula for years, comparing the same commodities. Therefore, it can serve as a relative measure for comparing different points in time.

Comments (0) Leave a comment 

e-Mail (required)


characters left

Kuhn SR 100 GII SpeedRakes®

The best just got better with the Kuhn SR 100 GII SpeedRakes. Refined styling, higher strength materials and improved options ... Read More

View all Products in this segment

View All Buyers Guides