At $27.10 per hundredweight, dairy farmers received a record price for their milk in April 2022. This is the first time the All-Milk price pushed past either the $26 or the $27 threshold. The April 2022 milk prices were $1.20 higher than just one month earlier when the All-Milk price notched $25.90 per hundredweight, a record that stood for a mere 30 days.

Prior to the two most recent historic months, the all-time best milk price was $25.70 posted in September 2014, according to data from USDA’s Agricultural Prices. Back then, costs for feed were far different. Eight years ago, alfalfa fetched $194 per ton, corn sold for $3.28 per bushel, and soybeans garnered $9.64 per bushel.

Fast-forward to the present, and alfalfa hay prices have jumped 25%, with alfalfa hay selling for $243 per ton and premium alfalfa hay netting $271. Soybeans have climbed 56%, now garnering $15.08 per bushel with soybean meal at $476.70 per ton. Corn tops the leaderboard as values shot skyward by 116%, reaching $7.08 per bushel. Also notable are the escalating costs for fuel and fertilizer.

With that perspective, this April’s record milk price of $27.10 . . . up just 5.5% when compared to 2014 . . . doesn’t exactly cover the new cost overruns. Even so, the high prices found in this April’s milk checks were still welcomed by all those in the dairy community.

This item was updated at at 9:30 CDT on June 2.

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(c) Hoard's Dairyman Intel 2022
June 2, 2022
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