Butter prices at 4-year low

At mid-month, butter prices dropped to their lowest level since November 2021. “In a typical year, you tend to see the price for bulk butter spike in September and October, right as we’re heading into that holiday baking season,” said Katie Burgess, dairy analyst, Ever.Ag. Burgess said the sharp drop-off is due to record-high butterfat levels on U.S. farms. She cites advances in genetics and nutrition for boosting the fat content in milk. The abundance of cream resulted in the uptick in butter production.

Supply, demand numbers updated

In the September supply and demand report, the U.S. Department of Agriculture increased its milk production forecast for 2025 and 2026. A larger dairy herd and more milk per cow got the credit. With competitively priced cheese and butter, U.S dairy exports are expected to increase this year and next. USDA lowered its all-milk price forecast for both years. The 2025 average all-milk price is estimated at $21.35 per hundredweight. For 2026, that price is forecast at $20.40 per cwt.

Dairy exports increase

U.S. dairy exports rose in June, reaching nearly 19% of domestic milk solids production. That’s the highest level since 2022. Stocks of major dairy products held steady from May to June. U.S. fluid milk sales rose a half-percentage point from one year ago, while domestic yogurt consumption increased more than 12%.

High court to review tariff strategy

The Supreme Court has agreed to review a lower court decision that said President Trump does not have the authority to implement most of his tariffs. In a 7-4 ruling, a federal appeals court rejected President Trump’s tariff strategy. In a White House news briefing, Trump said tariffs are a tool for negotiating trade. “If that ability were taken away from us by a liberal court, acting on, essentially, foreign nations asking to get help from the United States government, when they’ve been doing this to us for 40 years, that’s why we have $38 trillion in debt,” said Trump. “We won’t have it for long if they allow us to do what everybody knows we should be able to do.” If tariffs are taken away, Trump said the U.S. would end up being a third-world country. Even with an expedited process, the Supreme Court will not hear oral arguments on this case until early November.

USMCA review process begins

The U.S. Trade Representative’s Office is taking public comment ahead of next year’s reorganization of the U.S.-Mexico-Canada Agreement. The trade deal calls for a mandatory joint review in July 2026. If the three countries cannot come to an agreement, the trade agreement will expire in 2036.

Relief likely before the end of ’25

During an appearance before the National Association of State Departments of Agriculture Conference in Arkansas, Agriculture Secretary Brooke Rollins stated that the USDA is working on a disaster assistance package. “The cost of doing business for farmers and ranchers increased drastically as prices slipped (and) U.S farm production inputs all cost so much more today.” Rollins said Congress has already committed to providing a bridge until the next chapter for American markets kicks in. The economic assistance could reach farmers before the end of this year.

Sound, simple, clear

According to Agriculture Secretary Brooke Rollins, the upcoming national dietary guidelines will be sound, simple and clear: “These guidelines will prioritize whole, healthy and nutritious foods, such as whole-fat dairy.” The guidelines will follow the recommendations made by the Make America Healthy Again Commission, of which Rollins is a member. “I am encouraged by the roadmap that this report represents,” she said.

Farmers left waiting as farm bill lags

Farmers may face frustration as Congress signals it has already done enough on the farm bill, according to Policy Solutions President Jay Truitt. “While technically it’s not done, they feel like they’ve already gotten the real hardcore negotiations already passed in other venues and some of the issues. That’s problematic.” Truitt also notes that the looming threat of a government shutdown is largely political and may not have direct consequences for farmers. “I don’t really get panicked about the whole shutdown thing. It’s more political than it is real.”

‘Over-politicized,’ ‘unnecessary’

USDA will no longer measure food insecurity, saying the report has become “overly politicized” and “unnecessary.” The 2024 report will be released next month, but the 2025 report has been discontinued. This report has been done since the mid-1990s.

DATCP fee increase proposed

The Wisconsin Department of Agriculture, Trade and Consumer Protection is proposing regulatory changes and fee increases dealing with animal disease and movement and the fees for auction markets and truckers. According to DATCP, most of the fees in this rule haven’t been increased since 2008 and 2009. An analysis by the Wisconsin Farm Bureau Federation found the proposal would change the cost of an Animal Market Class A license from $420 to $7,430. A late fee would move from $84 to nearly $1,500. The registration fee paid by livestock haulers would rise from $60 to $370. Written comments can be submitted until mid-October.

Saputo Cheese plant to close

Saputo Cheese USA plans to close its Suamico cheese manufacturing plant in December. A letter was sent to the Wisconsin Department of Workforce Development, detailing the plan to lay off 240 employees. Saputo plans to close the Green Bay area plant and consolidate and modernize operations at its facility in Franklin, Wisconsin.

McDonald’s invests in regenerative ag

The Golden Arches is making its largest investment in regenerative agriculture. With an investment of $200 million over the next seven years, McDonald’s hopes to improve grazing practices, restore habitat and support water and wildlife conservation. USDA and the National Fish and Wildlife Service are among the partners in this voluntary initiative.

New strategic plan for Voice of Milk

A leading dairy group has launched a new strategic plan. The Voice of Milk is made up of Edge Dairy Farmer Cooperative, Dairy Business Association, Minnesota Milk Producers Association and Farmers for Sustainable Food. The plan will be implemented over three years and be anchored by “a robust research initiative based on information gathered and analyzed from dairy farmers and processors across the Midwest.” Voice of Milk’s leadership was restructured as part of the strategy. CEO Tim Trotter leads the 10-member executive leadership team.

Trivia challenge

The McFlurry is the McDonald’s ice cream treat that includes items like M & M candies or Oreo cookies. That answers our last trivia question. For this week’s trivia, what costly dairy cow disease features the inflammation of the udder? We’ll have the answer in our next edition of the Dairy Star.

Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.