January Milk-Feed Margin $7.99, Triggering Potential Payment
The United States Department of Agriculture’s Farm Service Agency announced yesterday that the milk/feed margin for January 2019 was $7.99/cwt, potentially triggering a payment for those who enroll in the Dairy Margin Coverage (DMC) program.
USDA has also announced that sign-up for the DMC won’t occur until June 17, with payments starting in July and retroactive to the first of the year. Producers who sign up for a coverage level of $8 to $9.50 would be eligible for a payment for January.
Note: Operations making a one-time election to participate in DMC coverage through 2023 are eligible for a 25% discount on their DMC premiums.
The milk-feed margin for December was $7.85, triggering a 15¢/cwt payment for those producers who signed up for $8 coverage under the old dairy Margin Protection Program, which ended Dec. 31, 2018.