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2024 Dairy outlook: returning to a sense of normalcy

Higher processor demand and still-low butter stocks are setting the stage for more milk production from Canadian dairy farmers in 2024. This, combined with strong culled cow/calf prices and stabilizing – though still high – input costs provide context to our average gross margin estimates for 2024, which look better than they have in the last few years (Figure 1).  

In December 2023, the Western Milk Pool (WMP) announced that, effective February 1, 2024, quota increases would take effect. The increases are not distributed evenly across provinces (see Table 1) due to a ‘rebalancing’ effort to ensure all four provinces in the WMP are on an even playing field. No quota increases in eastern Canada (i.e., the P5) have been announced at this time. 

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Midwest Weather Shock: Flash Drought Turns Into Heavy Rain Threat This Week (2026 Forecast)

Video: Midwest Weather Shock: Flash Drought Turns Into Heavy Rain Threat This Week (2026 Forecast)

A rapidly changing Midwest weather pattern is unfolding in 2026 as areas that recently slipped into abnormal dryness and flash drought conditions are now facing the threat of heavy rain and repeated storm systems.

After a wet spring erased early drought conditions, regions across Illinois, Iowa, Wisconsin, Minnesota, and northern Missouri have quickly dried out again since mid-to-late May. Soil moisture is dropping fast, and crops like corn and soybeans are beginning to feel the stress of rising temperatures and lack of consistent rainfall. Now, weather models show a major shift.

A developing system moving in from the Northern Plains is expected to bring multiple rounds of showers and thunderstorms, with the potential for locally heavy rainfall across the Midwest. While some areas may miss out, others could finally see much-needed relief from the growing dryness. In this video, we break down:

Current drought conditions across the Midwest

Why a flash drought is developing quickly

Timing and path of incoming storm systems

Which states are most likely to see heavy rain

How long this wet pattern could last

Will this rain end the drought or create new flooding risks? Watch the full forecast to find out.