Swirl of fluid milk.
August 1, 2016

June Dairy Margin is $5.75/cwt; Lowest in Program History

 |  By: Jim Dickrell

The United States Department of Agriculture reported today that the Dairy Margin Protection Program milk/feed margin for June was $5.75/cwt, the lowest margin in the 28 months of the program.

The May margin was only 2¢/cwt better, so the average of the May/June pay period was $5.76/cwt. That means the 4,852 dairy farmers who bought up coverage for $6 to $8/cwt will be receiving payments.  (Note: Had Congress not tweaked the MPP margin prior to approval, it’s likely the milk/feed margin would have fallen below $5.50/cwt and another 357 farmers would have been eligible for payment.)

The June milk/feed  margin was based on $14.80/cwt milk, $3.82/bu corn, $142/ton alfalfa and $408.57/ton soybean meal. The total ration cost was calculated at $9.05/cwt. While the all-milk price in June climbed 30¢/cwt, the ration costs jumped 32¢ resulting in the slightly lower over all margin.

See full results here.

 

 

 

 

This block is broken or missing. You may be missing content or you might need to enable the original module.