The December 2017 dairy budget utilizes the Central Federal Milk Market Oder minimum prices as published on their website. This occurs about the 10th of every month. I also use various monthly USDA price reports to obtain feed prices, cull cow prices and to calculate corn silage value. Revisions to feed and fixed costs will occur for the January budget. Thus comparison from December 17 to January 18 will not be possible.
The December 2017 dairy budget net revenue declined by $0.91 per cwt. for the 20,000 pound budget and $0.85 per cwt. for the 24,000 pound budget. This occurred from a decline of income and a rise in feed costs. The Nebraska-Iowa dairy budgets still calculates a small return to management for 20,000 pound budget, $0.84, and a larger return for the 24,000 pound budget, $2.68.
The following calculations refer to the 20,000 pound budget. Income from protein dropped by $1.036 per cwt, butterfat income dropped by $0.21 per cwt and other solids income dropped $0.327 per cwt. Fortunately, the increased PPD compared to November, $1.102 per cwt., offset some of the decline in component values. During December, feed costs rose by $0.497 per cwt. All dairy diet components rose in price.