MPP Margin Exceeds Payment Levels Again
Dairy Farmers of America (DFA) predicts the Margin Protection Program milk-feed margin for June was approximately $9.33. DFA economists figured the margin using prices reported by USDA in the June Agriculture Prices report.
USDA reported corn at $3.43 per bushel; alfalfa hay at $152 per ton and soybean meal at $300.72 per ton. The agency reported the all-milk price for the same period was $17.30 per hundredweight.
The May milk-feed margin reported by USDA was $8.95. If DFA’s calculation matches up with what USDA reports the margin being in the next few days, the two month average will be $9.14. That price is well above the highest coverage level of $8.
The program has not paid out since this same reporting period in 2016 when the margin was calculated to be $5.76.