September's Dairy Margin Coverage (DMC) of the US improves to $6.93 per cwt

Published 2021년 10월 29일

Tridge summary

The U.S. average dairy farmer income over feed cost margin, calculated under the Dairy Margin Coverage (DMC) program, improved in September, marking the first increase since last spring. The USDA released its latest Ag Prices report, which included factors used to calculate September 2021 DMC margins and payments. Milk prices rose to a three-month high, while corn and soybean meal prices softened. The September DMC margin is $6.93 per hundredweight (cwt), and dairy producers insured at the top $9.50 per cwt Tier I level will see an indemnity payment of about $2.57 per cwt. Additionally, the average milk price rose to $18.40 per cwt, and hay prices continued to climb, while feedstuff prices yielded an average DMC total feed cost of $11.47 per cwt of milk sold.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Editor's note: Tables mentioned in this article will be added later. The U.S. average dairy farmer income over feed cost margin calculated under the Dairy Margin Coverage (DMC) program improved in September, the first month-to-month increase since last spring. The USDA released its latest Ag Prices report on Oct. 29, including factors used to calculate September 2021 DMC margins and payments. Milk prices moved to a three-month high while corn and soybean meal prices softened. Based on monthly average prices, the September DMC margin is $6.93 per hundredweight (cwt), $1.68 higher than August’s historic low and the largest margin since April 2021. Despite the improvement, it still marked the eighth straight month in which the DMC milk income margin was below $7 per cwt. Dairy producers insured at the top $9.50 per cwt Tier I level will see an indemnity payment of about $2.57 per cwt (Table 1). That translates to an average of about $2,038 per 1 million pounds of milk. Additionally, ...

Source: Progressivedairy