1996 USDA MILK PRICE OUTLOOK
H.M. Harris, Jr.
Extension Ag Economist
USDA has finally gotten on the bandwagon and is predicting higher milk prices
this year, as have most analysts for several months. Highlights of USDA's
current dairy outlook include:
- Average farm prices 50-70 cents per cwt above 1995 averages.
- Concentrate prices averaging 15-19 percent higher this year.
- Alfalfa hay prices averaging lower than the past two years, but variable
across the country, particularly for high quality hay.
- Milk per cow estimated up two percent.
- Cow numbers to decline about one percent, with numbers held up by low
cull cow prices.
- Gradual decreases in farm prices this spring, but prices well above
year-earlier levels.
- A moderate seasonal price rise in the fall.
- Retail prices up 3-4 percent for the year.
Producers should carefully factor these numbers into 1996 cash flow and income
projections. Much depends on prospects for sharply higher crop production in
1996.
THE CLEMSON UNIVERSITY COOPERATIVE EXTENSION SERVICE OFFERS ITS PROGRAMS
TO PEOPLE OF ALL AGES, REGARDLESS OF RACE, COLOR, SEX, RELIGION, NATIONAL
ORIGIN, OR HANDICAP AND IS AN EQUAL OPPORTUNITY EMPLOYER.
COOPERATIVE EXTENSION WORK IN AGRICULTURE AND HOME ECONOMICS--STATE OF SOUTH
CAROLINA, CLEMSON UNIVERSITY, U.S. DEPARTMENT OF AGRICULTURE, AND SOUTH
CAROLINA COUNTIES COOPERATING.
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