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USDA forecasts a good year for dairy farmers

The USDA is calling for better milk prices and reduced supplies this year.

In its latest supply and demand report, the department says lower milk production per cow is expected to reduce overall supplies.

USDA expects prices for cheese, butter, nonfat dry milk, and whey to increase because of reduced milk production and good demand.

The Class III price was increased with support from higher cheese and whey prices. USDA also increased Class IV prices because of higher butter and nonfat dry milk price forecasts.

The all milk price for 2025 increased by 50 cents to $23.05 per hundredweight.

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