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Iowa/Nebraska dairy budgets improved in October

Iowa/Nebraska dairy budgets improved in October
The financial scenario for Iowa and Nebraska dairy farmers improved in October, according to Extension educator Robert Tigner.
October’s milk income grew due to higher values for protein, butterfat and other solids, offset slightly by a larger negative producer price differential deduction. The October milk price averaged $21.12/cwt., up from $19.28/cwt. in September.
October corn, corn silage and protein prices were virtually unchanged from September, but hay prices rose. Cottonseed prices were lower.
To cover total costs, Tigner calculated the breakeven price at a 20,000-lb. RHA was $25.75/cwt.; the breakeven price at a 24,000-lb. RHA was $22.98.
Overall, the October budget showed improved cash flow for dairy producers, enough so that nearly all costs were covered except unpaid labor and management.
Next month’s budget should show declines in feed costs, Tigner said.