It turns out 2022 was a year for the dairy record books as mailbox milk prices posted a record $24.64 per hundredweight (cwt.). That value was 60 cents higher than the previous $24.04 watermark set in 2014.

When compared to just one year ago, mailbox prices were up $6.95 per cwt. when contrasted to the 2021 average of $17.69. As a result, total receipts for dairy products and milk in the United States were up from $42 billion to $58 billion. This took place primarily on the strength of higher milk prices.

The record milk prices were met by strong headwinds that included sky high feed and input costs. As new crop feed rolled into storage, the Dairy Margin Coverage Program revealed that corn had climbed 29%, soybean meal jumped 44%, and blended alfalfa price spiked 51% when comparing October 2022 to October 2021. For those growing their feed, fertilizer, fuel, and oil leapt by over 50%. Then there’s rising interest rates and the escalating cost of borrowing money.

The meaning of mailbox prices

This marks the 27th consecutive year that USDA has reported mailbox prices. The number represents a dairy farm’s “take home” pay in their milk check. Mailbox prices take into account all payments received for milk, including performance bonuses and premiums, as well as all deductions such as promotion, hauling, capital retains, and co-op dues. The price is for milk of average milkfat and protein and is a weighted average of the order or region.

To compare your own mailbox prices, simply add back any voluntary deductions from your milk check. These checkoffs can include dairy products or supplies, association fees, or other assessments.

Top mailbox price regions

In 2022, southern Missouri topped all regions with a $26.34 mailbox price. This marks the first time since 2016 that Florida did not lead the regional list. That’s the year New England outflanked Florida for the poll position. Outside of those two years, Florida and its hot and humid climate that isn’t conducive for making milk, has led the nation in mailbox milk prices.

All 20 regions in the table below are ranked based on mailbox prices. In general, regions high in Class I fluid milk sales rose to the top of the list. Also, states and regions with higher Class IV powder sales also climbed in relation to heavy cheesemaking states last year. That’s because Class IV prices outpaced Class III prices for 11 of the 12 months.