A declining U.S. average milk price more than offset lower average overall feed costs, shrinking the milk income margin.
The USDA National Agricultural Statistics Service (NASS) released its latest Ag Prices report on June 30, including factors used to calculate May 2023 Dairy Margin Coverage (DMC) margins and indemnity payments. Once again, a declining U.S. average milk price more than offset lower average overall feed costs, shrinking the milk income margin to its lowest level since inception of the DMC program and its predecessor, the Margin Protection Program for Dairy (MPP-Dairy).
May 2023 DMC at a glance
DMC program margin factors compared to previous month:
Alfalfa hay: $317 per ton, up $2 from April 2023
Corn: $6.54 per bushel, down 16 cents
Soybean meal: $423.58 per ton, down $33.67
Total feed costs: $14.48 per hundredweight (cwt), down 38 cents
Milk price: $19.30 per cwt, down $1.40
Margin above feed cost: $4.83 per cwt, down $1.01
June 30, 2023
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