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Shrinking DMC margin triggers large February indemnity payments


A declining U.S. average milk price and higher average costs for corn and soybean meal drove milk income margins to their lowest level since August 2021.


The USDA National Agricultural Statistics Service (NASS) released its latest Ag Prices report on March 31, including factors used to calculate February 2023 Dairy Margin Coverage (DMC) margins and indemnity payments. A declining U.S. average milk price and higher average costs for corn and soybean meal drove milk income margins to their lowest level since August 2021.


February 2023 DMC at a glance

Dairy Margin Coverage (DMC) program margin factors compared to previous month:


Dave Natzke April 4, 2023

progressivedairy.com

agproud.com


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