That milk price increase was offset slightly by a 0.6% increase in overall feed prices. The average cost to feed a cow producing 65 lbs. of milk per day rose 3¢, to $4.86/day.
Measured another way, feed costs per hundredweight of milk produced averaged $7.48/cwt. in January, up 5¢ from December. With the higher milk price, the milk margin over feed costs was $16.52/cwt., up 55¢/cwt. from December 2013 and up $4.37/cwt. from a year ago.
Dunn’s forecast of the average 2014 Pennsylvania all-milk price is $22.97/cwt., which would be up $1.49 (6.9%) from 2013’s estimated price of $21.48/cwt.
To read Dunn’s latest Dairy Outlook report, click here.
USDA to release new long-term agricultural projections
USDA will release new 10-year agricultural projections on Feb. 13. USDA's Agricultural Projections to 2023 will be posted to the Office of the Chief Economist's (OCE) website at www.usda.gov/oce and available in MS Word and PDF formats. Projections data will be available as Excel spreadsheets here.
USDA publishes the projections each year in February. The projections are developed by interagency committees in USDA, with the Economic Research Service (ERS) having the lead role in the preparation of the report. The new projections cover crop and livestock commodities, agricultural trade and aggregate indicators, such as farm income, through 2023. The projections do not represent a USDA forecast, but a conditional, long-run scenario based on specific assumptions about farm policy, weather, the economy and international developments. Normal weather is assumed throughout the projection period.
The projections were prepared during October through December 2013, with the 2008 Farm Act assumed to be extended and remain in effect through the projection period. Therefore, the projections do not reflect the Agricultural Act of 2014.
Background on USDA's long-term projections and past issues of the report are available on the ERS website at www.ers.usda.gov/topics/farm-economy/agricultural-baseline-projections.aspx.