Dairy Margin Coverage program might hit record payout
A dairy safety net program will likely have a record payout for June. A USDA official tells Brownfield the Dairy Margin Coverage Program margin forecasts through the end of the 2023 DMC program year are below $9.50, and so the formula using the milk margin minus feed costs means Dairy Margin Coverage payments are possible depending on the level of coverage chosen by the dairy producer. If the margin remains as forecasted, then June and July payments could be record payment months for the program.
USDA says The June 2023 income over feed cost margin is $3.65 per hundredweight, which is $1.18 per hundredweight lower than the May 2023 margin and $8.27 per hundredweight lower than June of last year. USDA says this is the lowest margin since the Dairy Margin Coverage (DMC) program started and is below the “catastrophic margin” of $4.00 per hundredweight.