Margins for DMC plunge to a record low
The margin over feed costs calculated by USDA for the Dairy Margin Coverage (DMC) program fell to a record low in June. That value of $3.65 was $1.18 less than the previous record that had just been set the month before.
The feed prices used for the calculation — including corn, premium alfalfa hay, and soybean meal —were lower than the May prices but remain high compared to historical values. The big driver, though, was the All-Milk price. The year started off at $23.10 per hundredweight (cwt.) but tumbled to $17.90 per cwt. in the June calculation. With final feed costs determined to be $14.25 per cwt., that left the milk margin above feed costs at just $3.65.
Aug 7, 2023