DMC margin remains above payment threshold at $9.93 per cwt
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Both a higher all-milk price and feed costs buck forecasts for a Dairy Margin Coverage margin of $9.93 per hundredweight.
Forecasts for July’s Dairy Margin Coverage (DMC) program predicted a lower all-milk price and feed costs for a DMC margin that would hover just above the $9.50 per hundredweight (cwt) coverage level and the first indemnity payment threshold. The USDA National Agricultural Statistic Service (NASS) Agricultural Prices report, released Aug. 31, established July’s DMC program calculations with a healthier margin of $9.93 per cwt, supported by both an all-milk price and total feed cost that were better than predicted.
A peek at July DMC
Prices for major dairy feedstuffs that influence the DMC program margin were reported in the USDA’s Agricultural Prices report for August (Table 1).
Jenn Coyne
August 31, 2026
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