Dairy Margin Coverage payments triggered for seventh consecutive month
August 5, 2021 By Mark Dorenkamp Filed Under: Dairy, News
USDA’s Farm Service Agency says market conditions will trigger Dairy Margin Coverage Program payments for a seventh consecutive month.
FSA points to continued high feed costs, strong production, and overhanging domestic stocks putting pressure on milk margins.
American Farm Bureau economist Daniel Munch says risk management programs like DMC are providing a revenue buffer for the nearly 19,000 dairy farms enrolled.
Munch says until feed costs recede or the all-milk price increases to a margin higher than $9.50, payments will continue to be triggered for at least some producers.
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