August Milk/Feed Margin at $10.83/cwt
Economists with Dairy Farmers of America are estimating the milk/feed margin under the Dairy Margin Coverage program will be $10.83/cwt in August.
This is the fourth time this year that the margin has exceeded the $10 mark, and the fifth time over eight months that the margin exceeded $9.50/cwt (the trigger for the highest level of indemnities under the program).
The August milk feed/margin is based on an all-milk price of $18.80/cwt, corn at $3.12/bu, blended alfalfa at $182/ton and soybean meal at $290.18/ton.
The highest all-milk price for the year came in July at $20.50/cwt, which led to the highest milk/feed margin for 2020 at $12.41/cwt.