As was the case with most Americans, dairy farmers were blindsided by the financial crisis and the recession. Although operating costs rose sharply in 2008, milk production was still profitable; USDA’s Economic Research Service estimates U.S. producers returned an average of $4.71/cwt after operating expenses last year, compared to nearly $8/cwt in the record price year of 2007. When overhead costs are included, producers still netted 25 cents/cwt in 2007, and the net loss of $3.29/cwt is comparable to the returns throughout most of the decade.