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