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“Last Big” DMC Payment Triggered for 2023

The USDA announced the August Dairy Margin Coverage (DMC) margin was $6.46, the highest since January but still low enough to generate payments for coverage levels between $6.50 and $9.50 per cwt. Milk insured at the $9.50 level will receive an indemnity payment of $3.04 per cwt. Compared to a month earlier, U.S. average feed costs were lower and milk prices were up, pushing the milk income margin up to more than $3 per cwt. from July’s historic low.

According to Phil Plourd, president of Ever.Ag, this could be the last large payment producers will receive this year.

“The August payment counts as the lowest since January and, by our figuring, will probably be the last ‘big’ payment of 2023 now that we’re seeing record high butter prices, a firming powder market and at least a modest bounce in cheese values,” he says. “Programs like DMC, Dairy Revenue Protection and Livestock Gross Margin have been a critical lifeline for producers in what’s been a tough year.”

October 3, 2023



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