January DMC margin lands at $7.81 per cwt
- ZISK
- 6 hours ago
- 1 min read
Milk prices fell to pressures of overproduction as feed costs held steady, resulting in a Dairy Margin Coverage margin of $7.81 per hundredweight and triggering payments in both tiers of the program.
The USDA National Agricultural Statistics Service (NASS) Ag Prices report, released Feb. 27, established January’s Dairy Margin Coverage (DMC) program calculations. Factors contributing to the margin include a milk price $1.50 below December 2025’s price and feed costs 11 cents higher than that of the month prior. The result is a DMC margin of $7.81 per hundredweight (cwt). This margin triggers a $1.69 indemnity payment for operations enrolled in Tier I at the $9.50 per cwt coverage level, and a 19-cent indemnity payment under Tier II at the $8 per cwt coverage level.
Jenn Coyne
February 27, 2026
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