Producers have been wired to head to the mailbox this calendar year, as Dairy Margin Coverage (DMC) payments have been triggered due to a stretch of low milk income. As expected, another round of DDMC payments will hit producer’s mailboxes soon.
At just $3.52 per cwt., the July DMC margin triggers Tier I indemnity payments at all coverage levels, from the catastrophic price floor of $4 per cwt. to the maximum coverage level of $9.50 per cwt. The top payment is $5.98 per cwt. at the maximum $9.50 coverage level.
According to Erick Metzger, general manager of National All Jerseys, milk protected at the $9.50/cwt. level will realize indemnity payments for more than $4,461 for each 1 million pounds enrolled. The year-to-date payments totaled nearly $21,242 per 1 million pounds covered at the maximum level.
September 1, 2023
dairyherd.com
