Dr. Bob Cropp has been saying all year long that total milk production will need to simmer down before prices get any better. And one day after the USDA announced that October's national output was up by another 1.4 percent over last year, the professor emeritus with the University of Wisconsin-Extension says the results are predictable.
In his monthly Dairy Situation and Outlook report, Cropp pointed out that U.S. milk production is running about 2.5 percent more than in 2016—which so far has been the biggest year for milk production on record.
But if milk prices start the year near current futures market prices, the industry could see heavier culling of milk cows and a lower increase in milk per cow.
Meanwhile, farmers may want to keep an eye on what's happening overseas, as well as on our North American neighbors. Cropp says U.S. exports are experiencing competition from EU and Canada.
Read more from the Wisconsin Ag Connection.