As expected, another round of Dairy Margin Coverage (DMC) payments will be coming to producer’s mailboxes. USDA’s Farm Service Agency announced on Friday that May’s DMC income over feed cost calculation is $4.83/cwt. Milk covered at the $9.50 level will realize an indemnity of $4.63. This is the lowest milk income margin since the inception of the DMC program.
The announced May 2023 U.S. average milk price is $19.30/cwt., the lowest level since September 2021.
For May indemnity payments, each 1 million pounds insured at $9.50/cwt will receive $3,488.10 before sequestration.
July 5, 2023
dairyherd.com
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