U.S. average replacement cow prices decline

The article provides an overview of the U.S. and Canadian dairy markets, highlighting changes in dairy cow prices, milk price increases for Canadian producers, and the recent surge in global dairy trade prices. It notes a decline in the U.S. average replacement cow prices, which remains below the peak in 2014, alongside concerns about tight milk income margins and decreasing cow numbers. In Canada, the milk price increase of 8.4% for 2022 aims to partially offset input cost hikes, particularly in feed, energy, and fertilizer, resulting from the COVID-19 pandemic. Meanwhile, global dairy trade prices have seen significant gains, with notable increases in skim milk powder, whole milk powder, butter, and cheddar cheese prices, indicating a tightening dairy market. Additionally, the article discusses the USDA's efforts to procure dairy products for domestic distribution and highlights the concerns of agricultural producers regarding rising input costs, which could impact operating margins and future farmland cash rental rates.