As feed costs continue to escalate for all livestock owners including dairy farmers - their paid price for milk is dropping.

Wisconsin farmers received an average price of $16.50 per hundredweight (cwt.) or about $1.41 per gallon at the farm gate for their milk in December 2010.  That price is 50 cents lower then what growers received in December of 2009.

USDA officials announced that the January milk price is also expected to decline another 50 cents per hundredweight.  Federal officials say growers should expect the price to be around $16.00 or $1.37 per gallon at the farm gate.

The expected U.S. milk price for January is $16.20 per cwt., 50 cents lower than last month, but 20 cents more than Wisconsin’s price. All 23 of the major milk producing states except for California are expecting their January price to be lower than December’s price. California is expecting an increase of 52 cents. Idaho is expecting the lowest price in the country, at $14.60 per cwt.