DMC Margin Loses $1.57/cwt in March, Mostly on Lower Milk Price
May 5, 2025
The monthly Dairy Margin Program margin fell $1.57/cwt to $11.55/cwt in March as the U.S. average all-milk price fell $1.60/cwt to $22/cwt, more than outstripping a small decline in feed costs.
The DMC Decision Tool on the USDA Farm Service Agency website has long projected the monthly margin would reach a bottom for 2025 this spring, but the March downward move outpaced its projections. On the last day of April, the Tool showed the correct milk, corn and soybean meal prices for March, but anticipated a much lower premium alfalfa hay price and showed a projected March margin of $12.29/cwt. At that time, it also projected the margin would reach a 2025 low of $11.05/cwt in June before rising again.
