Happy Cows

Farmers and ranchers have paid the higher price for inputs, as long as the market follows. Rabobank Global Dairy Strategist Mary Ledman says the milk market in 2022 and low feed prices meant good margins for dairy farmers. That may not be the case for 2023. “2022 was the year when milk prices reached record high in some places, and we were still using the previous year’s cheaper feed. 2023 is the year we’re still paying feed expenses and milk prices have come down.” Ledman says with increased input costs, they could see some sell-off of the dairy herd. “Hopefully margins will be back at break-even, otherwise we see happy cows go to happy meals, especially now with the strength in beef prices.”