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Cropp: Milk prices likely to rise in face of drought and uncertainly

Prices paid to dairy producers for milk are likely to increase in the coming months, says Bob Cropp, emeritus professor of agricultural economics in his August Dairy Situation and Outlook. Drought has shrunk the potential size of the corn and soybean crops and has already reduced the production of hay as much as 29 percent. The tight supplies of increasingly expensive feed and hot weather have combined to make farmers send more cows to market and restricted milk production. As a result of less milk being produced and strong dairy sales milk prices are likely to increase to $20 cwt for most of the year. Read the entire August Dairy Situation and Outlook.