The average cost to produce milk has climbed substantially so far this year. In our conversations, we have been hard-pressed to find anything — services or products — that are cheaper this year than they were at this time in 2020. Based on our straw poll of producers, average wages are up 10% to 15% on U.S. dairy farms compared to levels a year-ago. The costs of parts has jumped by 20% or more and fuel prices are still trending higher, after already climbing by more than 35%. While the Federal Reserve debates inflation, it’s clear it has already arrived at dairy farms. And I haven’t yet mentioned feed costs. In the first four months of 2021, corn prices rose by 32% year-over-year and soybean prices jumped by 48% versus 2020 levels. Based on my estimates, total feed costs were more than $2 per hundredweight (cwt.) higher January through April than in the same period in 2020.