March Milk/Feed Margin $6.77
The United States Department of Agriculture’s Farm Service Agency has announced the milk/feed margin for March at $6.77, a decline from the February margin of $6.88.
That means dairy farmers who sign up for the Dairy Margin Protection Program at the $8, $7.50 and $7 level would receive an indemnity in March (and of course, February). Farmers have until June 1 to sign up for MPP coverage in 2018.
The March payment is based on an all-milk price of $15.60/cwt, a corn price of $3.51/bu, alfalfa at $166/ton and soybean meal at $379.85/ton. The decline in margin from February came as a result of higher feed prices, with all three commodities used in the feed formula seeing an increase. Milk prices actually increased 30¢/cwt from February.
The premiums for Tier 1 (production history of the first 5 million pounds of milk production are: 14.2¢ for $8 coverage, 8.7¢ for $7.50 coverage and 6.3¢ for $7 coverage.
For more on the MPP, click here. https://www.fsa.usda.gov/programs-and-services/Dairy-MPP/index