Effect of Drought on Dairy Farms

The ongoing drought could result in dairy farmers taking a hit because of less corn silage, alfalfa and grain corn to feed their cattle.

Most of this will affect the dairy farmers in the fall, and they won't know until then the extent of the losses.

As to how that could have an effect on the price of milk, it's the futures, in the end, that determine that. But it's certain if the drought continues the milk futures are sure to rise in conjunction with it.

Beef cattle prices would have a similar response, as would any animal relying on corn for its feed source.