Higher milk prices and lower feed costs helped Illinois dairy producers post positive cash returns in 2024, but operations continued to face negative economic returns, according to the Illinois Farm Business Farm Management Association.
The average net milk price was $21.63 per hundredweight, up 79 cents from 2023, exceeding feed and cash operating costs of $17.43 but falling short of total economic costs of $23.56. On a per-cow basis, producers averaged $5,090 in milk returns compared with production costs of $5,499, resulting in a net loss of $409 per cow. Milk production averaged 23,530 pounds per cow, up 549 pounds from a year earlier. Feed costs declined to $11.64 per hundredweight, while nonfeed costs rose to a record $11.92.
Despite improvement from 2023, returns have not exceeded total economic costs in the past decade. USDA projects lower milk prices in 2025 and 2026, suggesting continued negative economic margins for Illinois dairy farms.
SOURCE: NAFB News Service
