Dairy Farmers Will Get MPP Payment for 7th Consecutive Month
The United States Department of Agriculture (USDA) reported a milk-feed margin of $7.43/cwt for August, which means dairy farmers who signed up for the $8 coverage level will get a Margin Protection Program (MPP) payment of 57¢/cwt.
This would mark the seventh consecutive month farmers who signed up for $8 coverage received an MPP payment this year. The payment comes even though milk prices increased 50¢/cwt and feed costs declined 21¢ in August. Note: The July milk-feed margin was $6.72, triggering an MPP payment of $1.28.
In August, corn prices averaged $3.36/bu, down 9¢ from July. Alfalfa prices were off $2 per ton to $177, and soybean meal prices declined $8.58/ton to $332.50. According to the MPP feed calculation formula, that places feed costs at $8.47/ton.
You can read more about the MPP here.