As predicted, a very large Dairy Margin Coverage (DMC) payment is coming to producer’s mailboxes.
As predicted, a very large Dairy Margin Coverage (DMC) payment is coming to producer’s mailboxes. In fact, June’s DMC income over feed cost calculation set a new record low at just $3.65/cwt. Milk covered at the $9.50 level will realize an indemnity payment of $4,366.09 for each million pounds enrolled. This is down $1.18/cwt from May’s previous record low.
Premium alfalfa hay fell $7 per ton to $310, and corn slipped $0.05 per bushel to $6.49. Soybean meal dropped $10.12 per ton to $413.46, making feed costs $14.25/cwt, down $0.22.
The margin above feed cost is down $1.18/cwt from May’s previous record low. This is the lowest milk income margin level since the inception of the DMC program and its predecessor, the Margin Protection Program for Dairy (MPP-Dairy). Year-to-date payments total $16,780 per one million pounds covered at the maximum level.
Karen Bohnert
August 1, 2023
