The ongoing milk price rollercoaster that seems to be on a downward track has once again forced a Dairy Margin Coverage (DMC) payment to be issued in 2023. Based on USDA’s Agricultural Prices report released late Wednesday afternoon, the Dairy Margin Coverage income over feed costs for April was $5.84/cwt. Producers with coverage of $9.50/cwt. will realize indemnity payments of $2,735.38 for each one million pounds enrolled.
Compared to March, the all-milk price fell $0.40/cwt. to $20.70, corn rose $0.03/bu. to $6.70, premium alfalfa hay increased $1.00/ton to $315, and soybean meal fell $27.15/ton to $457.25.
Year-to-date $9.50 coverage has paid $8,926.53 for each one million pounds in return for the $1,500 premium. The Farm Service Agency projects payments will continue through October for the highest level of coverage.
By KAREN BOHNERT
June 1, 2023
dairyherd.com
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