Risk Management Tools Are Key

The USDA has just released the average prices for Wisconsin ag products in September. Prices remain higher than 2021, but dairy futures are falling. Ever.ag risk management Director Katie Burgess joins Mid-West Farm Report for a live conservation about current dairy markets and what producers need to prepare for in 2023.

The Wisconsin all milk price for September 2022 was $22.10 per hundredweight, according to the National Agricultural Statistics Service. This was unchanged from last month’s price but $3.70 above last September’s price.

The U.S. all milk price for September was $24.40 per cwt, $2.30 higher than Wisconsin’s price and 10 cents higher than August’s U.S. price.

Burgess says the difference between block and barrel cheese got out of whack over the past month. Late last week, the markets got back into normal alignment, but cheese prices were lower. And the spread did have an impact on Wisconsin producers’ milk checks.

She says risk management tools are key for 2023. She notes that dairy consumption peaks during the holidays. When that backs off, so will the milk price. This morning the November Class III milk contract is trading at $20.47. The December contract is trading at $19.06.

The average price received by Wisconsin farmers for corn during September was $7.12 per bushel. This was 17 cents above the August price and $1.30 above September 2021.

The September average price received by farmers for soybeans, at $14.10 per bushel, was $1.60 below the August price but $2.20 above the September 2021 price.

The September average oat price per bushel, at $4.53, was 16 cents below August but $1.35 above September 2021.

All hay prices in Wisconsin averaged $144 per ton in September. This was $16 above the August price but $5 below the September 2021 price. The September 2022 alfalfa hay price, at $161, was $20 above the previous month and $1 above September 2021. The average price received for other hay during September was $96 per ton. This was $2 above the August price but $14 below September last year.