USDA Milk-Feed Margin Approaches $11
USDA last week released the Agricultural Prices report for October. Corn was reported at $3.84 per bushel, blended alfalfa hay was $192.00 per ton, soybean meal was $309.48 per ton.
The final feed cost was $9.02 and the all milk price was $19.90 per hundredweight.
Based on those prices, the Dairy Margin Coverage program (DMC), milk-feed margin for the month was $10.88 per cwt. This is the highest margin ever reported for the program.
The 2018 Farm Bill authorized the new Dairy Margin Coverage (DMC) program, which is a voluntary risk management program for dairy producers. DMC replaces the Margin Protection Program for Dairy (MPP-Dairy).
The 2020 DMC enrollment reported by individual states as of November 25, 2019 shows 4,015 or 14.84% of the 27,059 dairy farms with established production history are enrolled in the program.
For those who haven’t enrolled, USDA’s DMC decision tool was designed in partnership with the university of Wisconsin to help producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net. Use the decision tool, here.